Yesterday was another wild ride on Wall Street. The reason was simple, though. The political media simply continues to invade the financial media. And yesterday, the market went down on what is essentially fake news. In today’s blog, we’ll discuss what’s really going on in the market right now, and why you shouldn’t believe everything the media has to tell you.
I know yesterday’s scare tactics caused some volatile market swings. The reason was simple, though: More headlines about an impending trade war between the U.S. and China. But folks, don’t let these headlines scare you. Fear sells, and right now the mainstream media is simply trying to sell papers.
Here’s what I mean. Early yesterday morning, China announced it would slap additional tariffs on 106 American products. This move came after President Trump revealed a potential list of Chinese imports for additional tariffs of our own yesterday. The key word here, however, is “potential.”
You see, just like with the steel and aluminum tariffs from the other week, the reality is that none of these tariffs have been implemented yet. All of this back and forth is simply a series of negotiating tactics for better trade deals. That means, right now, each side is threatening tariffs to better get what they want. For President Trump, that’s returning a manufacturing base to the United States.
But there’s nothing tangible to fear here. The market’s underlying fundamentals are solid, and the “trade war of words” hasn’t materialized into anything substantial yet. For the moment, it’s all just so much hot air.
Personally, I viewed yesterday’s pullback as another great buying opportunity. First-quarter earnings announcement season will kick off in a few short weeks, and I’m still expecting wave-after-wave of positive earnings reports to support higher stock prices.
That’s because this coming earnings season is set to be the best earnings season of my lifetime. So, I encourage you to get fully invested now, folks. Within the next ten days, everybody will want to be all-in on the stock market. I know I intend to be. I hope you do, too.