Stocks Go From FOMO to Fear In Just 3 Weeks

Vacation plans are down, and airlines are warning investors. Consumer spending represents almost 70% of the entire economy. Uncertainty is growing, but we are experiencing the best buying opportunity in the last 18 months. How far stocks go, up or down, will depend on the economy's health. That future has not been written. Hang in there. Making decisions to satisfy the fear of missing out or fear of loss seldom turns out well.

Chart of the Week

President Trump would not rule out a recession during an interview with Fox News over the weekend. His administration has a lot it wants to accomplish, and avoiding pain is not one of its goals. Add the reality of tariff chaos and DOGE cuts to the mix. There is a lot of uncertainty for the most powerful economy in the world.

Secretary to the Treasury Scott Bessent explained it best: 'The market and the economy have just become hooked, and we've become addicted to this government spending. There's going to be a detox period.'

Nvidia Corp. has been caught skirting U.S. trade regulations. An estimated 17% of sales were secretly and allegedly sent to China. The stock is down, way down. It has erased almost $1 trillion in market value in two months.

Market Update

Stocks are falling, especially the so-called Magnificent 7. Monday experienced one of the highest volumes of trading ever. These have often marked good buying opportunities. However, nothing is guaranteed. The news has been tough on stocks, and I don't know when it will turn. Perhaps we are looking for a day when the markets move up, not because of good news but despite the bad news. That is a good sign (if it happens).