{"id":13717,"date":"2025-04-15T14:10:57","date_gmt":"2025-04-15T14:10:57","guid":{"rendered":"https:\/\/zacksim.com\/blog\/?p=13717"},"modified":"2025-07-07T14:49:54","modified_gmt":"2025-07-07T14:49:54","slug":"avoid-sudden-moves-in-this-market","status":"publish","type":"post","link":"https:\/\/zacksim.com\/blog\/avoid-sudden-moves-in-this-market\/","title":{"rendered":"Avoid Sudden Moves In This Market"},"content":{"rendered":"\n

No Sudden Moves in an Event-Driven Market<\/strong><\/p>\n\n\n\n

In last week\u2019s Mitch on the Markets <\/em>column, I offered readers a central takeaway:<\/p>\n\n\n\n

\u201cSelling out of the market today [April 5] substantially increases the chances of being whipsawed when a rally takes hold, which again, no one can know the precise timing of.<\/em><\/p>\n\n\n\n

In the current environment, the setup is that any modicum of good news on trade will factor as a positive surprise for markets going forward, which will almost certainly trigger strong moves higher. Long-term investors simply cannot afford to miss these upswings<\/em>.\u201d<\/p>\n\n\n\n

What a difference a day can make.<\/p>\n\n\n\n

In the days following President Trump\u2019s April 2nd announcement, we learned that the U.S.\u2019s new tariff rate was projected to reach approximately 25%, which blew past worst-case scenarios and even surpassed the economically catastrophic Smoot-Hawley tariff levels of the 1930s. But by April 9th, virtually all \u201creciprocal tariffs\u201d were paused for 90 days. The \u2018modicum of good news\u2019 I referenced above was actually a big positive, with the worst-case scenario of tariffs being taken off the table.<\/p>\n\n\n\n

There is still the China story, however. Beijing initially responded with retaliatory tariffs of 34% on the U.S. (China is the U.S.\u2019s third largest export market), but in the days since, tariff rates have ratcheted higher. As I write, China has raised levies on U.S. imports to 84%, and President Trump has raised the tariff rate imposed on China to 125%.<\/p>\n\n\n\n

What we\u2019re left with today is a 10% universal tariff on all imports into the U.S. and an economic stand-off between the two world\u2019s largest economies. Which is to say, investors should not necessarily expect a durable rally from here. Volatility works both ways, and we are almost certainly not out of the woods yet.<\/p>\n\n\n\n

Recession Risks Are Rising. Is Your Portfolio Built to Withstand It?<\/a><\/u><\/strong><\/p>\n\n\n\n

Markets surged, then sank, as the latest round of tariffs on imports from China, Vietnam, and the EU hit harder than expected. These kinds of event-driven shocks\u2014swift, unpredictable, and market-moving\u2014are exactly what can test even the most seasoned investor.<\/p>\n\n\n\n

No one can time the next recession perfectly. But you can<\/em> be ready for it.<\/p>\n\n\n\n

If you have $500,000 or more to invest, download our free guide\u2014A Recession is Coming: 6 Insights to Know You\u2019re Prepared1<\/sup><\/a><\/u><\/em><\/strong>\u2014for strategies designed to help protect your portfolio through uncertainty.<\/p>\n\n\n\n

Inside you\u2019ll learn:<\/p>\n\n\n\n