I spent most of Thursday night here in the office watching Asian and European markets carefully for clues as to what today's trading conditions might hold for us when U.S. markets opened. The impact looked limited, and, in fact, the major indexes opened slightly higher as traders continue to weigh China's muted response to the president's tariffs.
So let's start there.
The president announced $60 billion in additional trade tariffs yesterday, which sent the markets into an immediate tailspin that wiped roughly $768 billion off the books. That's an asymmetrical - meaning uneven - response if I've ever seen one.
It's a situation I've seen a handful of times in my career over the past 35 years, which is why I'm communicating with everyone today.
It's very much a "good news, bad news" moment.
The bad news is that situations like this are rarely "one and done" - meaning that it's not the last time we will see such volatility.
In fact, I think volatility will become our constant travelling companion in the weeks ahead.
So here's what that means for us.
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The Market Has to Move to Be Healthy
The good news is, volatility's both necessary and expected when it comes to profits. You can't move higher without buying and selling. The key to navigating this profitably is to concentrate on the companies, CEOs, and "must-have" products we talk about frequently. They're the ones that will recover faster and that truly have the growth needed to produce big profits.
I get asked frequently why the swings we see today are so violent and so broad, and, in fact, my e-mail is lit up this morning with exactly that question yet again.
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The answer comes down to computers. In the old days, there was a blend of human trading and a much smaller percentage of automated order flow. Today, that's reversed, with computers making up as much as 70% to 90% of total order flow. Worse, it's moving so fast, humans cannot keep up!
Fortunately, that's something I'm well aware of, having programmed a number of highly sophisticated automated trading platforms in my time. And more importantly, it's something YOU'RE prepared for, because I've seen to that ahead of time.
Every tactic I recommend, every trade I suggest, every bit of analysis I share incorporates this knowledge. My job as Chief Investment Strategist is to give you the ability to defend AND grow your money against these sorts of shenanigans.
That way, you take away Wall Street's advantage and put more money in your pocket.
Here's What to Do Right Now
Right now, I want you to take a deep breath and concentrate on having a superb weekend. My team and I will be burning the midnight oil to ensure you have every last bit of insight, analysis, and our best thinking immediately.
(NOTE: Make sure you're getting every single of Keith's Total Wealth updates each week as volatility accelerates. Just click here, and you'll be signed up; it's absolutely free and always will be.)
And if you're upset or feeling anxious about what's happening, or current market conditions, please know that's normal: You are not alone.
The fact that you feel that way is a good sign, because it means you are involved - as opposed to clueless or uncaring, like most investors.
I will be back in touch, probably a bit more than usual over the next few weeks. So keep an eye on your e-mail for updated profit alerts, trading instructions and, of course, some great buys!
A good "sale," after all, is something you just don't pass up!
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About the Author
Keith is a seasoned market analyst and professional trader with more than 37 years of global experience. He is one of very few experts to correctly see both the dot.bomb crisis and the ongoing financial crisis coming ahead of time - and one of even fewer to help millions of investors around the world successfully navigate them both. Forbes hailed him as a "Market Visionary." He is a regular on FOX Business News and Yahoo! Finance, and his observations have been featured in Bloomberg, The Wall Street Journal, WIRED, and MarketWatch. Keith previously led The Money Map Report, Money Map's flagship newsletter, as Chief Investment Strategist, from 20007 to 2020. Keith holds a BS in management and finance from Skidmore College and an MS in international finance (with a focus on Japanese business science) from Chaminade University. He regularly travels the world in search of investment opportunities others don't yet see or understand.