Tariff or April effect, does it even matter?
It depends on who you asked. For tariff , with all the media looking in and hyping up, that seems to suggest an affirmative. As for April effect, historical data seems to suggest so, since 72% of the time, it ends up higher on average. Why? It is normally related to tax day. As end April is tax time in US, it has been speculated that more people put money into their IRA to reduce their tax bills. IRA cash often than not find their way into stock market, boosting the market.
If you ask me, now that I am no longer a trader, I don't really pay much attention. For an investor, near term doesn't affect much unless an unrecoverable crash is coming in that particular time period. The question for me rather is how do I protect my 💰 while still have a foot in the market. As I mentioned before in a couple of articles, we don't have the luxury of sitting and watching like a certain Warren Buffett. Of course $Berkshire Hathaway(BRK.A)$
So, I do the next best thing in these times.
As you can see, I have positions in gold and silver (mainly miners and some physical silver, besides the leverage silver ETF, $ProShares Ultra Silver(AGQ)$ of course), leveraged 20 years Treasury in $Direxion Daily 20 Year Plus Treasury Bull 3x Shares(TMF)$ (happily losing position though, working through on Auto-Invest and earning dividends as I go). The only one that got away is definitely $Berkshire Hathaway(BRK.B)$ !
April comes and goes. May will come and it starts all over again. The market won't collapse or shoot to the 🌝 just because it's a particular month. I won't even bother about it.
As for the tariff effect, the announcement is just around the corner. Think about it, are you going to glue to your internet and waited amid bated breath for the Donald Trump's game show? Some folks would probably remember his show, "The Apprentice"? His Presidency is merely an extention of his show business. It's supposed to be a show, if one can ignore the noise!
Sure, tariff could lead to tariff wars, and I am sure the American citizens will suffer. The rest of the 🌎 will also feel the effect from the fallout, and probably trigger a recession! That's why tariffs or no tariff, I have started the Auto-Invest into leveraged Treasury, with regular purchases into gold and silver related investment. They were in place way before Donald Trump started his second term.
That is what it is all about, protect yourselves at all times, April or otherwise, tariffs or no tariff. Participate in the market but with a plan at all times.
Join the discussion too! @Barcode I am sure you have a lot more to say on this topic!
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