RAT MONEY
RadioAustinTexas.com
04/01/2025
Insiring, uninspiring, and down right messed up financial news of the day.
The media on this page is taken largely from a financial newsletter now published by Sherwood Media. They enfolded the company Robinhood, which is an online stock trading company and financial company. Its CEO has done some really wild things in the stock trading game, and is one of the most impressive people known.
Around a year ago, he led the stampeded of investors at Robinhood in the GameStop market takeover, which made them billions, and cost many billionares and large hedgefunds billions, and made them the laughing stock of Wall Street. He named his company well.
However, I am referring to Robinhood’s previous CEO. Now it is Bulgarian born Vladamir Tevin, 36 years old.
Robinhood Financial
The S&P 500 turned massive losses into a solid gain yesterday. It was shaping up just like Thursday and Friday — a tumble in AI darlings leading the market down — until it wasn’t.
The S&P 500 was down more than 1.5%, yet managed to recover those losses and then some, gaining 0.6%. The Nasdaq 100 nearly erased a loss of 2.5% to finish effectively flat. The Russell 2000 ended down 0.6%.
Even so, there was a defensive tinge to the tape. Consumer staples was the best-performing S&P 500 sector ETF (and other traditionally defensive sectors performed well), but financials weren’t too far behind in second place. Tech was the laggard, though all sector ETFs advanced.
After the bell, OpenAI announced the biggest tech fundraising round on record, with a $40 billion raise at a $300 million valuation. Here’s the thing: there’s a catch.
“LIBERATION DAY”
How on earth do you trade a possible 20% tariff?
The Trump administration has pointed to April 2 as the day it will roll out a suite of tariffs that, if implemented, would upend decades of global economic order and radically change the assumptions that underscore the structure of the American economy. Who wins, who loses, who knows?
Today’s the last day to get your portfolio in the best shape to handle whatever comes across the transom tomorrow. Either way, how on earth are investors going to trade this?
It’s safe to say that global markets are rattled:
China, Japan, and South Korea have thrown in their lot together and will jointly respond to US tariffs. Good luck finding another issue that China, Japan, and South Korea have managed to agree on.
Longtime ally Canada is furious, and Canadians are preparing for a fight.
American banks are already cutting back their expectations for the US economy, with Goldman Sachs officially slashing its S&P 500 forecasts for the second time this month, citing higher tariffs and growing recession risks.
Investors are getting uneasy with all this chaos. Event contract platforms like Kalshi give a 42% chance of a recession this year, up from about 18% in January, and Goldman gives a 35% chance of a recession in the next 12 months, up from 20%.
THE TAKEAWAY
Reports indicate the administration is considering a blanket 20% tariff on all US trading partners. No living investor has had a day like that happen in their lifetime. So, not much to say beyond: good luck out there!
Last updated 04/01/2025