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Afternoon Note

Powell Sets The Tone

By Charles Payne, CEO & Principal Analyst
4/4/2025 1:28 PM

It’s a red sea once again with commodities and metals also lower. Major indices moved off the lows after President Trump announced Vietnam and Cambodia are cutting their tariffs.

This news gave some resolve to retailers that have large suppliers in those countries and were beaten down yesterday.

However, Fed Powell comments reversed the trend, and the market started losing ground again. Powell didn’t come to the meeting for his presentation as the question-and-answer period gave hints that the Fed would spring into action, faster than in the past.

Noting how many people have forecasted slower growth, Powell & Co. noted "hard" data reflects the angst of "soft" data.

That being said, there is still a substantial self-fulfilling element to all of this. In other words, the outcome should be substantially better than what's baked into the stock market.

The magnificent seven underperforming once again, including Apple (AAPL), Nvidia (NVDA), and Tesla (TSLA).

All eleven sectors are getting hit with Energy (XLE) once again a notable laggard. The sector is moving lower as oil prices plunge.

We want to own companies with pricing power and expanding margins. Some of the retaliatory tariffs could impact them, but for the most part, when the dust settles, those companies will still be among the best companies.


Comments
Charles - I’m a 72-year-old retiree with a very modest retirement account and monthly income. I’m in total support of President Trump’s reciprocal tariff and economic policies. I, also, agree with you 100% on these issues. IMHO - his timing is perfect. Within 6 months, the pain of tariffs will be gone and the pleasure of personal and corporate tax reductions will be in place. Then the GOP will be in a position to keep or increase their majority in the House of Representatives in 2026.

I firmly believe the financial media, except for Fox Business, has caused most of this fear and anxiety with their negative reporting of Trump and his policies. I’m uncertain if it is an anti-Trump sentiment, or they are trying to drive the market lower so the truly wealthy can buy even more control at low prices.

Thank you for your daily commentary and programming on Making Money. I listen to you on Sirius XM every day. Please, keep up the good work.


Dale Smith on 4/6/2025 1:48:34 PM
 

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