Why tariffs ‘aren’t the problem’ in the stock market: Veteran trader

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Markets are shaken as the escalation of commercial negotiations by President Trump Expanded on tariff policy from its first term.

Stocks fell on Monday to S & P 500 (^ GSPC) its entry The worst day of 2025After Trump re-established 25% tariffs from Mexico and Canada I would go forward on March 4A number of Trump also promised that the United States would take an additional 10% tariff on Chinese imports.

The changing mood in the market has received such steps after tariff entitles this year. According to Wall Street Veteran Kenny Polcari, “Tariffs are not the problem. The panic of investors. “

“Each time the tariffs hit titles, the market fits the reserves, which screams in the trade war, and investors are again arguing in 2008. “But let’s just take a step. Is the tariffs really a disaster that they have been prepared? “

In the past month, the main indicators have fallen, as the number of new tariffs swimmingly floated, including reciprocal tariffs and new steel and aluminum responsibilities, among other products, among other products. But despite the tariff concerns have been front and center, investors have seen Stocks are reborn from sharp decline.

Read more: What are the tariffs and how do they affect you?

“Knee’s concussion response was ridiculous,” Polumbar said about sales in early February, when Trump announced the tariffs for Mexico and Canada. “Shares were jackets, instability, and the algorithms panicked.”

“But what happens when the dust is solved?” He continued. “The executives are regulated. Commercial transactions are reunited, and investors realize that the world does not end.

President Trump has said that tariffs contribute to local jobs, goods and services, and that government revenues increase to US national debt, which currently sits for $ 36.5 trillion.

However, predictors note that Tariff value often falls on consumerswho pay higher prices for everyday products imported from abroad.

Still, Polumbar claimed that investors’ trends may damage the possible effects of tariffs to regulate their investments as much or more tariffs.

“If you throw shares because of the tariffs, you make everything wrong,” Polumbar said.

Thomus Hayz, the capital, agreed, said that despite panic, these tariffs have arisen in the short term in the short term.

The story continues

“It is a fear of unknown,” said Hayes. “At some point, you have to back up when those shares are sold because they are exposed to China, or they have exposed to Mexico. You say: “Wait for a second. If I look at their free cash flow and two years of profit from this time, it will become a small block. It is equal to. “

So what should investors do at this time of economic uncertainty? Investors offered by Polamar “pay attention to where money moves.”

“Look at the companies of pricing, pricing, strength and diverse suppliers,” he said. “Watch how to move to the industry. This is where a real opportunity is found in the sale of non-panic, but with a smart position. “

“The bottom line,” he added, “Tariffs are not the end of the world, but the emotional trade, that’s what your return is actually kills”.

Every week at Trader Talk, Wall Street Veteran Kenny Polcari brings you expert advice and basic market insight on the New York Stock Exchange. You can find more episodes on us Video node Or view on your Preferred streaming serviceA number