Every Trump-era tariff shock follows the same playbook — panic, plunge, then powerful rebound. Markets tend to overreact to political noise, especially when liquidity and earnings remain strong. With S&P 500 still far above key supports and global PMIs intact, this looks more like a sentiment-driven shakeout than the start of a lasting bear phase.

For disciplined traders, such dips can be tactical entries, provided risk is defined. Scaling into quality names after capitulation, not during it, often yields strong risk-adjusted returns. However, with CTAs heavily positioned and volatility spiking, patience is crucial; second-wave selling can occur before the true reversal.

Personally, when politics hit, I trim leverage and watch positioning, but stay alert for asymmetrical setups. Trump’s unpredictability is both risk and opportunity — it creates chaos that punishes complacency yet rewards contrarians who act once fear peaks.

So: buy the fear, but do it strategically, not emotionally.

# 25bps Rate Cut! Will Market Fresh New Highs Ahead of China–US Summit?

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  • YoungYun
    ·2025-10-13
    Spot on! Love your insights here! [Wow]
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