Thoughtful Money with Adam Taggart Market Bloodbath: Is This "The Big One"? | Lance Roberts & Adam Taggart
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Apr 5, 2025 
Lance Roberts, a portfolio manager and chief investment strategist at RIA Advisors, delves into the turmoil of today's stock market, grappling with the heavy impact of new tariffs. He discusses whether this downturn signals a major correction or a potential rebound. The conversation touches on key indicators like credit spreads and revised earnings, navigating the psychological challenges of investing during volatility. Lance also offers strategies for maintaining financial security amid economic uncertainties, emphasizing the importance of proactive planning.
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Credit Spread Reversal
- Credit spreads have reversed their trend after resembling a "dead corpse" for a long time.
- This reversal signals rising risk, impacting banks, but doesn't yet indicate a systemic event.
Trading Strategy
- Sell into the upcoming market rally, reducing equity risk but not entirely.
- Some stocks are becoming cheap, presenting good entry points later.
Tariff Impact
- Tariffs, if maintained, will be deflationary, not inflationary, due to consumer inability to absorb price increases.
- This will lead to inventory imbalances, reduced business investment, and decreased demand.