Reward 500 Tiger-coinsUS stocks opened sharply lower, with $NASDAQ(.IXIC)$ plunging 1.5%. Mega-cap tech stocks weakened broadly: Nvidia, Tesla, Amazon, and Meta all fell more than 2%, while Alphabet and Microsoft slid nearly 2%, and Apple declined close to 1%.
It has been one year since Donald Trump returned to the White House. On the surface, markets have delivered a solid outcome, with the S&P 500 rising nearly 16% over the past year. Yet beneath that headline number lies a roller-coaster market defined by sharp drawdowns followed by repeated record highs.
Trump announced via Truth Social that the U.S. will impose 10% tariffs on eight European countries starting Feb 1, with the threat of raising them to 25% by June 1 if a “Greenland deal” is not reached. Markets reacted immediately: gold and silver hit fresh weekly highs, U.S. 10-year yields moved higher, and equities sold off, with major tech stocks under pressure.
Looking back, April’s so-called “Liberation Day” tariffs initially shook markets, but investors quickly reverted to a “buy-the-dip” mindset.
As Trump 2.0 moves into a midterm election year, history becomes less comforting.
Since 1948, the second year of a presidential term has delivered the weakest average S&P 500 performance. Combined with geopolitical tensions and uncertainty around the future leadership of the Federal Reserve, investors are facing a far more complex landscape.
Repeated tariff threats, the prospect of more aggressive rate cuts under a new Fed chair, and the potential for fiscal stimulus form a powerful but risky mix. For markets, this suggests ongoing volatility in the short term, liquidity support over the full year, and rising importance of hedges such as gold as inflation risks are deferred rather than resolved.
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In a Trump midterm election year, would you add risk assets, increase hedges like gold, or stick to buy-the-dip trading?
Would TACO happen this week?
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TACO man has just fired another round of tariff theatrics -10% to 8 European nations increasing to 25% if the Greenland deal does not happen.
Stocks took an express elevator down. Gold & Silver sprinted to new highs. US 10 year yields climbed.
With US midterm elections in 2026, do you add risk, boost hedges or buy the dips?
There is no right answer, only strategy that matches your temperament.
I may do all 3. Buy IAU Gold ETF, continue to dance with risk assets like USAR and then dip buying into SPYM ETF, treating every selloff like a TACO Special.
TACO man is at it again serving another year of spicy unpredictability.
@Tiger_comments @TigerStars @TigerClub
In a Trump midterm election year, I’m not rushing to add risk. I’m staying selective with quality exposure while leaning more on hedges like gold $SPDR Gold Shares(GLD)$ —not because I’m bearish, but because inflation risks are being delayed and policy swings are intensifying. Capital preservation matters more to me when policy direction is this unstable.
As for TACO, I still see a high short-term probability. Tough rhetoric often fades once markets react, but even if it happens this week, volatility remains. I’m watching rates and liquidity closely for confirmation.
@Tiger_comments @TigerClub @TigerStars
Check them in the history - “community distribution“
For now, I would stick to buy the dip trading as I bank on taco to happen and would add risk assets for the potential gains. However, I would exercise position control as these are going to be speculative and hence will only allocate a small portion of my portfolio in case I am wrong. Second half of this year and next year might be an end to this as risk would likely escalate.
I typically do not buy gold and prices are now insane. It is a case of demand outstripping supply but gold on its own has no growth so I think I will stay out of gold unless to trade