Fascinating. Financial markets have never seen anything like this. We need a new word to replace volatility. How about crazy? Insane? It might be a very good time to relax, take a deep breath and let things settle down. It works.
Now if the volatility (crazy, insane) in the financial markets have you confused and a bit ‘lost’, don’t fret. Not sure what’s going on? Rest assured no one knows what the h*** is going on. Not global central bankers. Not global governments. Not institutional trading desks. I’m not sure this short list shouldn’t include our (the U.S.) very own administration. So you’re in good(?) company. The difference is you can take a deep breathe and sit this dance out.
Currently there are two schools of thought on what these tariffs will do to the economy. Again, pure educated speculation. A true tug-of-war. Which of course leads to dramatic volatility (crazy, insane). Up, down and all around. Lets take a peek.
One group with some really big names in the financial world claim…
- The U.S. is collapsing and we are all going to die
- The dollar is going to zero and the world will not want dollars anymore
- Inflation will rocket up, interest rates will climb and wipe out half the populace
- A worldwide depression sets in
OK, a bit of exaggeration (but not far off) from the media.
The second group with similar really big names AND the administration claim;
- All this is fully planned out and not to be worried
- There will be some “short term” pain but the U.S. will be fine
- The “Golden Age of America” is on its way
- Tariffs will pay down the deficit allowing for tax cuts
- Manufacturing will return to America and create jobs
Both groups are highly vocal and convinced they know what will result. And you wonder why there is so much volatility (crazy, insane) in the markets.
No doubt about it. Change is under way. Traditional thinking/investing/trading is out.
What to do? Take a deep breath and step back.
