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Tariffs, Trade Wars, & Bottoms

  • Writer: T. Livingston
    T. Livingston
  • Mar 15
  • 2 min read

This post outlines my argument that the stock market has reached a significant bottom and will rally until the summer of 2025. Several factors indicate an oversold market poised for a strong recovery. While the S&P 500 has experienced a sharp decline in recent months, the Russell 2000 has fallen even further, nearing bear market territory, contributing to widespread investor bearishness.



Firstly, sentiment has become extremely negative. A review of financial blogs reveals significant fear regarding recessions, trade wars, and other news. Sentiment has reached levels typically seen at market bottoms. The AAII bull/bear survey shows bear sentiment nearing 60% this week, an extreme reading. Additionally, the VIX has surged, and put buying has increased, both suggesting a potential market bottom.




Notably, Chinese stocks like BABA, SE, FUTU, and BILI are exhibiting strong setups, indicating institutional investors may not be overly concerned about trade wars or recessions. Furthermore, Bitcoin, despite a recent decline, has found support at previous resistance levels, maintaining its post-election gains. This subtle strength suggests Bitcoin is being suppressed by the overall market and will likely rally strongly into the summer of 2025, alongside a broader market rally.






Risk right. Sit tight.


Full Disclosure: I currently own Bitcoin.


Disclaimer: This information is issued solely for informational and educational purposes and does not constitute an offer to sell or a solicitation of an offer to buy securities. None of the information contained in this post constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. From time to time, the content creator or its affiliates may hold positions or other interests in securities mentioned in this blog or the associated Twitter and Instagram feeds. The stock or stocks presented are not to be considered a recommendation to buy any stock or stocks. This material does not take into account your particular investment objectives. Investors should consult their own financial or investment adviser before trading or acting upon any information provided. Past performance is not indicative of future results.

 
 
 

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Hypothetical Performance Disclosure: Hypothetical performance results have many inherent limitations, some of which are described below. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown; in fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk of actual trading. for example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all which can adversely affect trading results.

Risk Disclosure: Futures and forex trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones’ financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results.

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