How Low Can Stocks & Crypto Go? May 27th, 2025

On Sunday, President Trump said he had a good call with the EU and was delaying the increase tariff from June 1st to July 9th.

Episode Transcript

Speaker 1 (00:00):
The Brian Mudjo podcast is driven by Brayman Motor Cars.
My family is a Brayman Motor Cars family. Your family
should be to visit Braymanmotorcars dot com. Your new day
starts with the Brian Mudshow the news you need to
start your morning in the Palm Beaches and the Treasure Coast. Hello,

(00:21):
can stocks and cryptocurrencies go?

Speaker 2 (00:24):
My first role money is.

Speaker 3 (00:25):
Never let your money in emotions cross paths.

Speaker 1 (00:28):
At least if you want to accumulate more of it,
and if you want want to just go blow a
bunch of it, yeah, you go ahead and do that,
but that's not all you're going for. When you're investing right,
you are trying to accumulate more money. Over ninety percent
of the time investors, when they jump in and out
of investments they try to time markets, they do worse
than if they just let their money alone wherever they

(00:50):
put in the first place.

Speaker 2 (00:51):
So we can be our own worst enemies. I don't
want you to do that.

Speaker 1 (00:54):
I want you to be able to take advantage of
the greatest wealth creation machine in the history of the world,
which is your United States dock market, without making those
emotional money mistakes and when we take a look at
the big three indexes coming into this week, we see
everything was lower last week, anywhere from two to three

(01:14):
percent lower during the week, and year to date you
now have negative returns of one to three percent based
upon the index you're looking at. So the market rally
pause last week actually had that furious recovery from April's
tariff tantrums, and we see that now markets investors looking

(01:39):
for direction again. Earning season is behind us, and so
headlines really are moving the market around at this point.
And last week the reason you had a bit of
selling was there was some uneasiness that came back into
the market. First you had the House passage of present
Trump's One Big Beautiful Bill Act and it's legislation. The

(02:01):
Wall Street right now kind of has like a love
hate relationship with because on one hand, the market loves
lower taxes and regulation those are pro growth policies. On
the other hand, bond market watchers are increasingly nervous about
the ever increasing national debt and that is projected on
grow should the One Big Beautiful Bill Act become law,

(02:22):
which at least according to CBO and independent agency estimates.
And then the other one that became a big one.
By Friday, you had the tariff flap two point zero,
so President Trump's announcement that he's intending to add twenty
five percent tariffs to iPhones that are not made in
the United States, and currently none of them are as

(02:43):
Apple has moved all iPhone production from China to India
since early April, so that was viewed as concerning by investors.
And then right behind that you had the announcement by
the President that he was considering a fifty percent across
the board tariff on the EU in what would be
an increase of forty percent of her current levels, as
trade talks had evidently stalled with the block in the

(03:04):
wake of Trump's trade deal with England. Remember England is
not part of the EU, That's what Brexit was all about.

Speaker 2 (03:10):
So on Sunday that all change.

Speaker 4 (03:14):
Following a call with the President of the European Commission,
President Trump' says he'll postpone fifty percent tariff rates on
European goods until July ninth, allowing time for trade talks
to continue. And so that brought about a lot of optimism,
presidents saying, hey, you know things, we had really good conversation.
They're serious about this, they want to do trade deal.

(03:35):
So the delay until July ninth for EU tariffs and
the optimism sounded by Trump most recently, you have a
massive rally that is set to take place in the
early going on Wall Street today unless something changes between
now and then, and so that is setting positivity in

(03:56):
this abbreviated trading week. As for crypto is Bitcoin bowls
out in four course again last week, pushing Bitcoin up
to near all time high levels close to one hundred
and ten thousand dollars, a gain of over sixteen percent
of the years. We're continuing to see basically one lane
for Bitcoin and just different behavior for everything else. I mean,
Bitcoin's long been the leader in digital currencies, but the

(04:17):
performance this year in particular really is the exclamation point.
For example, over the past week, Bitcoin's up six percent
sixteen percent of the year. Ether, which is your number
two player, only up one percent over the past week,
off twenty four percent of the year. I mean you
talking about a forty percent difference in performance between number
one and number two in digital currency space. And by

(04:39):
the way, I mean a lot of the you had
some of the second and third tier cryptos that were
performing particularly good because of Trump and his mean coin
and his dinner and all that.

Speaker 2 (04:49):
That took place last week.

Speaker 1 (04:51):
We saw a lot of selling after that event, and
pretty much people just saying with bitcoin, I cannot provide
any value analysis for cryptos because they have no in value.
I can for sacks because they do, using the S
and B five hundred as the benchmark. If only fundamentals
and nothing else mattered, your maximum downside risk from where
we sit.

Speaker 2 (05:09):
Right now is forty two percent.

Speaker 1 (05:12):
That is three percent less risk than the last week
because stock prices are lower and fundamentals were pretty much unchanged.
We also have seen a six percent improvement in fundamental
risk from a value standpoint since the peak of this cycle. Now,
if we got selling that came into the market again,
what I think there is going to be forty two

(05:32):
percent downside? No? Is it possible theoretically, So let's just
say it happened over the short run. If it would
not negatively impact your daily life, Okay, great, you're probably
in good shape. If it would, time for a new plan,
if necessary, a pro to help you with that plan.

Speaker 3 (05:47):
All right? From Florida Headline, state legislators, they will not
beginning to work on a budget in Tallahassee this week.
Republican Senate President bent All Britten on Friday sent out
a memo he says work can resume June. Second budget
has to be in placed by July. First phishing scam
to warn you about I actually got one of these.
Brian shows up as a text message claiming to be
from the Department of Motor Vehicles and it requests immediate

(06:09):
payment of an outstanding traffic ticket and claims failure to
comply will result in driving privileges registration being suspended. Florida
Highway Safety Motor Vehicles says, do not buy it. It
is a fake. They will never request payment or take
it by text. And the Florida Panthers need at least
one more win to wrap up the Eastern Conference Finals.
Carolina Hurricanes beat Florida last night three to nothing to

(06:31):
avoid a sweep. Those are some headlines.