Taco Sunday and the Tariff Tango

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Chris breaks down the latest market whiplash over Trump’s surprise tariff threats on China — and the predictable “walk-back” that followed. From rare earth minerals to Washington’s mining paralysis, he explains why America’s dependency on China isn’t going away anytime soon, how algorithmic trading fuels market chaos, and why having an anti-fragile portfolio is key to surviving the next tweet-driven sell-off. Grab your tacos — it’s another wild weekend on Wall Street.

Episode Transcript

Speaker 1 (00:00):
The Watchdog on Wall Street podcast explaining the news coming
out of the complex worlds of finance, economics, and politics
and the impact that we'll have on everyday Americans. Author,
investment banker, consumer advocate, analyst, and trader Chris Markowski Tackle Sunday.

Speaker 2 (00:19):
Yeah, Friday, Friday. I was what was it doing writing
working on next edition of our newsletter? And I happen
to glance over as a markets are down pretty big?
What's going on there? And oh, look at that Trump's
going to put more tariffs on China. Huhm, you know,

(00:43):
phone starts ringing. Chris, what are you think about this?
You want to talk about this? I'm like, are you
kidding me? One hundred percent tariffs on top of the
other tariffs? Did we have just seen this movie before?
We haven't seen this recently? And yeah, I said, yes,
sometime this weekend something will happen. They'll they'll walk it back.

(01:07):
And yeah, that sure enough, Sure enough. I guess it
was a misunderstanding, a little lost in translation action between
Z and the Trumpster. Now we had a great call
with wonderful China's wonderful President's Jinping, and our relations have
never been better. Look forward to our meeting in two weeks.

(01:29):
Thank you for attention to this matter. Don't worry about China.
It will all be fine. Highly respected President g just
had a bad moment. He doesn't want depression for his country,
and neither do I. The US wants to help China,
not hurt it. Ah. Okay again, I tried to explain
this before. Kind of both of our nations are intertwined

(01:50):
to kind of need one another. I get that. I
understand the importance of rare earth minerals. However, we the
people here in the United States and the powers that be,
for various different reasons, some of which is the environmental
wackos not allowing any sort of mining here in the

(02:13):
United States. We said, okay, I'm not gonna lis mind here.
We're it's gonna cost too much to get a permit,
take too long, you know what, We're got to go
find these minerals elsewhere. China's like, sure, we got them,
so we don't end up becoming self reliant on things
that are very very important to tech dumb and dumber

(02:35):
against this country. It's amazing, quite frankly, just how brain
dead the people are in Washington, d C. I'm glad
to see that changing. And obviously we're going to have
to develop our own rare earth minerals and being able
to get them out of the ground and supply them,
and that's obviously a national security concern. But until that
point in time, we got to buy them from China.

(03:00):
They also need to sell us stuff. So that's good, okay.
Kind of need one another, country side, need one another,
various different things. Less likely to fight again, step in
the right direction. As far as I'm concerned. People out
there talking about some of these tweets and the way

(03:21):
that the markets react and talking about how suspicious it is.
It's suspicious. I'm not going to deny it. I'm not
going to deny that the market action with these things
are suspicious. But again, is how the markets are rigged
today in the sense that information comes in various different

(03:42):
computerized trades. Algorithms pick up on various different statements, sell programs,
go into full effect, leverage in the system, cascade, get
out of the way, just step away, or don't even
pay attention to it, like we don't know. Unfortunately, many

(04:02):
investors do. Many investors do, and they think that they
can time these things and do all this. It's not easy.
Not easy. Again, you know what could have been held
off Trump could have put on tweets several days later.
I don't know when that's gonna happen. Okay. The issue
is and again, if you're levered in these things, you
can get wiped out fairly quickly. If you're not, you

(04:25):
know what, you can weather the storm. And this comes.
But also what we talk about having a portfolio that's
anti fragile, that can deal with shocks and come out
on the other side better than before. When you're levered up,
don't work that way. You get destroyed anyway. Taco Sunday,
who knows what's going to happen next in their meeting. Hopefully,

(04:47):
hopefully some of this stuff will go by the wayside.
But again I'm not holding my breath. Watchdog on Wall
Street dot Com