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Tariffs Were the Earthquake…The Trade Tsunami is the Trouble | Rise UP!

May 9, 2025
In this insightful discussion, Ben Wallace, a seasoned research director and portfolio manager, teams up with Emily Wood, a principal and certified financial planner, to analyze the implications of recent U.S. trade deals in the wake of tariffs. They explore the potential for avoiding recession and dissect market reactions. Emily shares pivotal strategies for managing liquidity amidst volatility and highlights the impact of working moms on financial stability. Ben emphasizes the importance of historical trends in predicting market movements, setting the stage for a looming trade tsunami.
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INSIGHT

Tariff Earthquake and Trade Tsunami

  • The tariff announcements acted like an earthquake causing a trade freeze and a pending "trade tsunami" impact on US markets in late May to July.
  • This will lead to price increases and possible empty shelves as companies integrate 100% tariffs into their costs.
INSIGHT

Trade Deal Market Optimism Conditional

  • The new US-UK trade deal is a positive first step but not economically large and still includes a 10% tariff.
  • Market optimism is stronger regarding possible progress with China trade talks, which will have bigger implications.
ADVICE

Manage Retiree Liquidity Carefully

  • For retirees, maintain enough liquidity so you don't have to sell stocks during market downturns.
  • Use income streams from dividends and interest and have allocations away from stocks for several years of withdrawals to manage volatility.
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