{"id":16709,"date":"2025-06-14T20:54:07","date_gmt":"2025-06-14T20:54:07","guid":{"rendered":"https:\/\/finderica.com\/?p=16709"},"modified":"2025-06-14T20:54:07","modified_gmt":"2025-06-14T20:54:07","slug":"how-we-turned-a-multi-week-meltdown-into-a-buy-opportunity","status":"publish","type":"post","link":"https:\/\/finderica.com\/?p=16709","title":{"rendered":"How We Turned a Multi-Week Meltdown Into a Buy Opportunity"},"content":{"rendered":"
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Over the past several years, I\u2019ve told readers repeatedly that market timing \u2013 jumping from stocks to cash and then back into stocks \u2013 doesn\u2019t work.<\/p>\n

Sure, anyone can make a good call occasionally.<\/p>\n

But no one gets it right consistently.<\/p>\n

That means it\u2019s just a matter of time before market timers end up on the sidelines while the market puts on a furious rally.<\/p>\n

The past few months have been a perfect case in point.<\/p>\n

Every time President Trump threatened or imposed tariffs, the market would sell off.<\/p>\n

And every time he delayed, reduced or negotiated them away, the market would rally.<\/p>\n

Just look at the tariff timeline since this year\u2019s inauguration\u2026<\/p>\n

On February 1, the Trump administration announced tariffs on Mexico, Canada, and China to take effect on February 4.<\/p>\n

On February 3, Trump reversed course and delayed tariffs on Mexico and Canada but allowed 10% duties on China to go into effect.<\/p>\n

On February 13, the administration unveiled a plan for \u201creciprocal tariffs\u201d on an array of countries and goods to take effect around April 2.<\/p>\n

On February 26, Trump claimed the European Union was formed to \u201cscrew the United States\u201d and again threatened the bloc with 25% tariffs.<\/p>\n

On March 4, the administration imposed 25% tariffs on imports from Canada and Mexico and an additional 10% tariff on imports from China.<\/p>\n

On March 6, Trump reversed course and excluded an array of goods from Mexico and Canada from the new tariffs. But tariffs on China stayed on.<\/p>\n

On April 2, Trump announced \u201cLiberation Day\u201d tariffs of 10% worldwide and additional duties on the \u201cworst offenders.\u201d<\/p>\n

On April 11, the administration announced reciprocal tariffs will exclude consumer electronics from most countries but retained a 20% tariff on electronics from China.<\/p>\n

On April 23, a dozen U.S. states filed a lawsuit to stop President Trump\u2019s tariffs, arguing they are unlawful because they bypassed Congress.<\/p>\n

On April 29, Trump signed executive orders to relax some of his tariffs on automobiles and auto parts.<\/p>\n

On May 12, the U.S. and China agreed that for 90 days, the U.S. tariff on Chinese imports would drop from 145% to 30% and the Chinese tariff on U.S. imports would drop from 125% to 10%.<\/p>\n

On May 28, the United States Court of International Trade put a temporary pause on Trump\u2019s wide-ranging tariffs, ruling that the International Emergency Economic Powers Act (IEEPA) does not give the president \u201cunbounded\u201d authority to issue worldwide and retaliatory tariffs.<\/p>\n

On May 29, an appeals court temporarily paused the order from the United States Court of International Trade, making the fate of Trump\u2019s tariffs uncertain.<\/p>\n

Wow. That\u2019s a lot of tariff impositions, delays, reductions, and negotiations.<\/p>\n

Now\u2026 let me ask you a question. Who predicted all of this?<\/p>\n

The answer, of course, is no one.<\/p>\n

Who predicted most<\/em> of this?<\/p>\n

Again, no one.<\/p>\n

That made timing the market\u2019s plunge and recovery impossible.<\/p>\n

Yet Oxford Club Members had the chance to make a boatload of money over this period.<\/p>\n

How? By knowing that the worst tariffs were unlikely to last.<\/p>\n

As I wrote to our Chairman\u2019s Circle Members on April 7, as the market was melting down\u2026<\/p>\n

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\u201cI\u2019m fully on board with [Trump\u2019s] plans to extend the 2017 tax cuts, deregulate the economy, boost our energy independence, and cut waste, fraud, and abuse from our bloated government bureaucracy.<\/em><\/p>\n

But his tariffs are an unforced error\u2026<\/em><\/p>\n

There is a strong probability that these tariffs will be delayed, reduced, repealed, or negotiated away.<\/em><\/p>\n

No one can predict how this will play out. Because it all depends on the whims of one man.<\/em><\/p>\n

But I believe that reason will prevail \u2013 and the tariffs will ultimately go away.<\/em><\/p>\n

It may take days. It may take weeks. But tariffs are a terrible idea when they are permanent.<\/em><\/p>\n

So, I\u2019m betting they won\u2019t be. <\/em><\/p>\n

If Trump calls taking the tariffs down a win and claims that was his plan all along, I\u2019m fine with that.<\/em><\/p>\n

It will also make the recent market dive \u2013 in hindsight \u2013 look like an overreaction.<\/em><\/p>\n

That\u2019s why I\u2019m inclined to use this dramatic sell-off as a buying opportunity.\u201d<\/em><\/p>\n<\/div>\n

Trump views the stock market as a barometer of his success as president.<\/p>\n

(And you should never underestimate a man who can turn a mug shot into a campaign poster.)<\/p>\n

Knowing this, Oxford Club Members had the chance to use the multi-week meltdown to buy over a dozen beaten-up stocks.<\/p>\n

Today they are much higher. In fact, one of them is up over 100% in less than two months.<\/p>\n

Following \u201cLiberation Day,\u201d equity investors everywhere got whipsawed.<\/p>\n

The worst sold in a panic as stocks collapsed.<\/p>\n

Average investors sat on their hands and did nothing. (Or made the mistake of waiting for stocks to get even cheaper before committing any fresh money to the market.)<\/p>\n

But smart, opportunistic investors took our advice and bought great companies while they were inexpensive.<\/p>\n

Now we are reaping the rewards.<\/p>\n

Bear in mind, we are not<\/em> market timers. We had no idea what Trump would do next. We had no idea how quickly the market would recover.<\/p>\n

However, we invest according to time-tested principles.<\/p>\n

History shows that the smartest thing to do in a market meltdown is to buy quality assets while they are inexpensive.<\/p>\n

Yes, you can always wait for stocks to go even lower.<\/p>\n

But that\u2019s market timing, and it doesn\u2019t work.<\/p>\n

Bottom line? When assets are cheap, don\u2019t get caught stealing in slow motion.<\/a><\/p>\n<\/p><\/div>\n