📈 Uncertainty Triggers Risk-Off
The market tanked yesterday.
Risk-Off
The first month plus of the current administration can be summarized with one word: uncertainty.
Investors have been on their toes with this administration, as we have constantly had news breaking surrounding topics like tariffs, Russia/Ukraine, budget cuts, inflation, and more.
The indexes have reflected this uncertainty with constant chop as investors try to figure out the policy positions of the country.
The latest news yesterday was that Canada and Mexico will soon be hit with tariffs, and the tariff on China will be raised. This immediately sent the market down.
To put this in perspective, the US Economic Policy Uncertainty Index is currently at levels higher than the Great Financial Crisis of 2008.
How to Move Forward
Right now, until we have more certainty in the market, trading of tech names should be limited to short-term trades instead of swings.
We have too much headline risk at the moment to be confident in tech swings.
Right now we need to be patient, let the market settle, and then we can pick our spots where it makes sense to put on risk.
For more on market internals and the sectors that are most appealing to me, watch this video: