Good news. Six months from now this tariff tantrum should be
behind us. But the history of these crashes is not the kind of company we’d
like to keep. All previous instances occurred during bear markets, recessions
and/or war.
The first three occurred during The Great Depression. Two revolved
around WWII, one at the outset and the other during the aftermath. One was the
Crash of Black Monday on October 19, 1987. Two came two weeks apart in November
2008 during The Great Financial Crisis and the last one was in March 2020 at the
beginning of Covid.
This too shall pass. But it’s not likely over yet. We are
waiting on let’s make a deal with China, rate cuts from the Fed, volatility to
dry up and the selling pressure to be exhausted. If you could put away your
phone and turn of the TV for six months, it probably wouldn’t be a horrible idea.
The time to buy over the next several weeks and months will present itself. For
now, sit tight and keep your powder dry, the bear has reared its head and recession
is quite possible.
