Do not buy the dip as yet. Wait. The markets haven't really worked out tariff impacts on companies as yet. Still doing that. This round of selloffs were just lazy. Easy option, sell. Now will come the smart sales of companies that are truly impacted.Then value stocks will emerge.
Sell offs will continue before markets realise that tariff impacts are limited. Imports are 16 percent of GDP. Lots of imports are components and inputs not finished products hence price impact is lower. You can already see value buying of oversold stocks like Kohls and Skechers.
The market is rebasing. These new lower levels will be the norm for sometime. And after earnings come in lower helped by tariffs, retaliation and etc, expect more value slippage.
Value destruction on such a scale and with such clear intent and speed is unprecedented in modern times. The downward trajectory is now set and hitting the ejector is what many are doing as it looks to be the only rationale choice.
Market in big time sell off mood today. Relax people. The tariffs ain't gonna hurt that much. Sure, some people have to drive their cars for longer, use their phones for longer and wear crappy clothes but that's about it.
Tesla yesterday was an object lesson on market chasing mirage. First down six percent, some correction. Then up five percent because musk is leaving doge. Not. So down five percent again. Nothing has changed about the company dudes!!