Fitful swings in equity and bond markets this past week have wrecked more sleepful nights than drunk neighbors on Independence Day. What can be done? The NASDAQ hourly chart resembles an EKG reading of a fibrillating heartbeat. Some fear this could be the heartbeat of the new American economy.
Treasury Scott Bessent has been making the rounds on numerous media outlets with defibrillator pads at the ready. Perhaps the cold plunge into the tariff pool may have been too much for prediabetic markets accustomed to a diet of loose fiscal policy. Financial stimulus is as addicting as sugar, so say the economists.
Though positive outcomes could arise out of the tariff negotiations, there are too many hands in the till that benefit from the status quo. Change is unwelcome when large sums of money are involved.
Even the benchmark 10-year Treasury has come under attack with yields increasing by approximately 50 basis points. Strange for the sudden shift in risk-off sentiment.
Almost as if a sovereign bond holder were dumping T-Bonds to apply strategic pressure on Washington D.C. But that is just silly speculation. Something is different about this selloff, but the principles of investing remain.
Equity markets often temporarily decouple from their long-term fundamental purpose, which is to value the progress of human innovation, growth and trade. We can see equity markets plunge regularly by -10% or more. In fact, this happens most years.
Bear markets occur every 5 years, on average. And yet, a recovery has never failed to materialize.
What happens next is not without precedent. We believe it will be no different, despite cries to the contrary. Remember, hyperbole is usually wrong and this is why we call it hyperbole. The news demands your attention and will go to great lengths to get it.
Balance out your newsfeed with Ben and Brent as they dive further into this topic. They discuss tariffs, recession worries, history of America’s major bear markets, and what to expect next.
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About Your Hosts
Ben Jones
Managing Director, National Wealth Management Group
Sign up for Ben’s newsletter at www.karastick.com
Follow him on X @thekaratstick
https://www.linkedin.com/in/ben-nwmg/
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Brent Gargano, CFPⓇ
Founder & Advisor, Infinite Wealth Planning
Brent's Website --> www.infinitewealthplanning.com
Connect with Brent on Linkedin - > linkedin.com/in/brent-gargano-cfp®-2067b573
Sign Up For Brent's Newsletter -- > https://share.hsforms.com/1maVO0YZ0T3uIA80kyeGi1Any3h8
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Editor
Trevor Gargano
Email: Trevor@trevorgargano.com
Linkedin: https://www.linkedin.com/in/trevor-gargano-72727b67/
Website: TheDigitalQuarterback.com
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Disclosure:
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
Advisors associated with National Wealth Management Group may be either (1) registered representatives with, and securities offered through LPL Financial, Member FINRA/SIPC, and investment advisor representatives of National Wealth Management Group; or (2) solely investment advisor representatives of National Wealth Management Group, and not affiliated with LPL Financial. Investment advice offered through National Wealth Management Group, a registered investment advisor and separate entity from LPL Financial.
All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.
The information presented is for educational and informational purposes only and is not intended as a recommendation or specific advice.
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