Donald Trumpā€™s brinkmanship and stop-start approach to tariffs rattle investors

Summary

Economists warn that the risk of a U.S. recession is rising due to Trumpā€™s unpredictable tariff policies.

Wall Street stocks fell sharply Monday, with the S&P 500 down 2.4%. Trump refused to rule out a recession, instead claiming itā€™s a ā€œperiod of transition.ā€

Goldman Sachs raised recession odds from 15% to 20%, and Morgan Stanley cut its 2025 GDP forecast. Consumer confidence hit a four-year low, and the U.S. trade deficit widened to a record $131 billion.

Analysts say Trumpā€™s tariff policy is fueling uncertainty and economic instability.

      • jsomae@lemmy.ml
        1Ā·
        14 hours ago

        gold has like tripled in price over the past few years though. Thatā€™s gonna come crashing down right?

        • artificialfish@programming.devEnglish
          1Ā·
          13 hours ago

          Also we were speaking in terms of currency you can hold in your hand. Iā€™d MUCH (can not emphasize this enough) have gold and silver in hand in my firesafe than USD or BTC. Itā€™s currency not stock. Cash is literally worthless, I donā€™t keep much at all.

        • artificialfish@programming.devEnglish
          1Ā·
          13 hours ago

          Well itā€™s a volatile asset, but over a lifetime it trends upward, just not as fast as stock. My question to you is, with the debt, with climate change, with AI, with fascism, how much do you trust currency and stocks over your lifetime?

          Iā€™m considering PHYS and VDC as a hedge today when markets open.

          • jsomae@lemmy.ml
            1Ā·
            6 hours ago

            Looks to me like VDC has gone down just like the S&P500. Are you saying itā€™s likely undervalued?

            PSLV should also be a hedge like PHYS; itā€™s also gone up, but not as much as gold. Could be safer.

    • DragonTypeWyvern
      6Ā·
      2 days ago

      In what currency though? Because Trump keeps signaling heā€™s going to crash the dollar out of sheer incompetence.

      • cabron_offsets@lemmy.world
        2Ā·
        2 days ago

        All currencies are fucked if the worldā€™s reserve is fucked. Besides, Iā€™m trading those dollars for equities.

    • wise_pancake@lemmy.ca
      3Ā·
      2 days ago

      I was going to drop a bunch of cash on a mortgage prepayment and renegotiate with that

      Now Iā€™m going to let it ride.

        • Kit@lemmy.blahaj.zone
          1Ā·
          5 hours ago

          That last part is the problem. My investments have lost tremendous value in the past 3 months, whereas if I had cashed our before Trump was sworn in Iā€™d be in a much better spot.