Maybe President Trump has decided to become the new E.F. Hutton…
Because when he talks – the markets listen.
While the new POTUS tries to put his stamp on the American economy – we’re hoping that the errrrr, “growing pains” won’t last too long – because his words and actions can send people into a tizzy.
How big of a tizzy?
Well, recently, investors yanked a staggering $5 trillion out of the S&P 500 – sending shockwaves through Wall Street…
And where did all that money go? Straight into an age-old safe haven that never goes out of style when markets get spooked.
Before we get to where it all went…
We need to figure out what triggered this mass exodus.
Of course, look no further than the latest round of tariff threats from good ol’ 47.
Investors, already on edge, watched as the administration floated a jaw-dropping 200% tax on European alcohol imports – and that was just one piece of a broader plan to ramp up tariffs across the board.
With that news – the S&P 500 officially slipped into “correction” territory – marking a 10% drop from recent highs.
And where did it all go?
Well, let’s get into that…
Yes, the markets have had a rough go.
Tech stocks took the biggest hit -dragging the Nasdaq down 4% alone…
And while Wall Street burned – gold (ahhhhhh, gold) soared and hit an all-time high of $2,985 per troy ounce – and some analysts (like those at Macquarie) are already predicting it could hit $3,500 before the year is out.
That may seem like a lofty target…
But it’s totally doable – especially when you keep in mind that we watched $5 trillion vanish from the markets overnight.
That changing everything – and changes it fast.
Bottom line…
While tariffs may wind up being a good thing in the end – in the short term – tariffs hurt.
They raise costs for businesses and consumers, squeeze profit margins and pour gasoline on the inflation fire.
Companies that rely on global supply chains (which is basically all of them these days) suddenly find themselves paying more for materials and products – while consumers get stuck with higher prices at the store.
No wonder Goldman Sachs (GS) is dialing back its outlook – cutting forecasts for both the S&P 500 and the broader US economy – which it now expects to grow only 1.7% this year…
A big downgrade from earlier, rosier predictions.
The real kicker? While the US is lurching toward a potential recession…
Europe might actually come out of this ahead.
Investors are starting to look across the Atlantic with renewed interest – not because Europe’s economy is booming (spoiler: it’s not) – but because European governments are about to unleash massive spending on defense.
With rising global tensions and uncertainty over American commitments to international security – countries like Germany and France are preparing to pump billions into their defense sectors.
And even Volkswagen (yes, the car company) is reportedly looking to retrofit its factories to build tanks.
So instead of Beetles – we’ll be seeing armored vehicles roll off the line.
Put it all together and it means the market is shifting, and fast.
If you’re still sitting in overexposed tech stocks or US growth companies – you might want to rethink that.
Defense, commodities, and European equities could be the new safe havens if this tariff war escalates – and inflation starts boiling again.
Of course, this is all speculative…
Who knows, if Trump is right on tariffs – the American economy could be in for a HUGE growth spurt.
I mean, stranger things have happened, right?
Either way, though – be prepared to move.
However, this begs the question: But how do you know where to pivot?
That’s where GorillaTrades comes in.
We don’t just guess where markets are going – we track the data, spot the trends before they break big and deliver actionable insights to our members.
While everyone else is panicking – GorillaTrades members are already adjusting their portfolios to profit from the chaos.
If you’re tired of watching the market rollercoaster and feeling stuck on the wrong side of every move…
Join GorillaTrades today.
Let us do the heavy lifting – so you can focus on winning.
That said, if you choose to go it alone – just know we’re always here if you need us.
We’re like 7-Eleven…
We may not always look open – but we’re always ready for business.
Until next time…
“In the midst of chaos, there is also opportunity.” – Sun Tzu
