The market is getting hit hard, and the latest tariff news from Trump is only adding fuel to the fire.
- The S&P 500 has slipped back below its year open, dropping over 6.5% since its all-time high just 10 trading sessions ago. (less than 2 weeks!)
- The Dow has been grinding lower since January 31st, losing 5.8% since its all-time-high at the end of January
- The Nasdaq has been in a slow downward drift since mid-December, but the latest flush started Feb 19th, taking 9.8% off its most recent high.
And now? We’ve got a new wildcard in the mix.
President Trump just confirmed 25% tariffs on Canada and Mexico will go into effect, rattling the markets even more.
Investors are already on edge, and now we’re seeing a fresh wave of uncertainty.
A Hedge Against More Downside
Markets don’t go straight up or down, but right now, the path of least resistance is lower. And if this slide continues, having some protection in place just makes sense.
That’s why I like the idea of buying SPY puts $100 out of the money, 3 months out.
If you want something a little more aggressive, $50 out of the money works too.
Why? It’s cheap insurance against further downside, letting you hedge long positions or even profit if this decline accelerates.
A Bright Spot: Gold Finding a Floor?
While stocks struggle, gold may have just put in a bottom.
After three weeks of choppy, downward action, gold futures (/GC) bounced sharply off 2844.7 on Friday and have been climbing ever since. As of this writing, it’s sitting at 2923.6 and gaining momentum.
If stocks keep sliding, expect gold to continue drawing safe-haven flows.
With the S&P back under its year open, Trump’s tariff shake-up, and gold showing strength, we could be in for a volatile stretch. Now’s the time to stay sharp and hedge smart.
Stay sharp,
—Geof Smith
P.S. Household debt is at record highs… markets are crashing around us… Now’s the perfect time to get started with this monthly income generation trade. (check out that track record!)
