Archives March 2025

Major U.S. equities indexes tumbled after Friday’s inflation report came in hot, and consumer sentiment weakened significantly.

The S&P 500 lost 2.0% in the week’s final trading session. The Dow closed 1.7% lower, while the Nasdaq plunged 2.7%. All three key market gauges ended the full week in negative territory as the sign of persistent inflation and consumer pessimism exacerbated concerns about escalating tariffs and the trajectory of the economy.

Lululemon Athletica (LULU) shares suffered the heaviest losses of any S&P 500 stock, plummeting 14.2% after the maker of yoga pants and other workout attire released its quarterly results. Although Lululemon topped sales and profit estimates for its fiscal fourth quarter, the apparel company issued lower-than-expected guidance for the current quarter and full year. Executives cited a downturn in traffic as customers limit spending in the uncertain economic environment. JPMorgan analysts cut their price target on the stock, noting that tariffs and currency exchange effects could weigh on profit margins.

Warner Bros. Discovery (WBD) shares sank 5.8% following a report in The New York Times about CEO David Zaslav’s struggles to revitalize the entertainment giant’s film studio, noting that ticket sales for its movies remain 40% below 2019 levels. The entertainment giant also announced a reorganization of its streaming content acquisition teams as it aims to align its strategy for its two streaming services, Max and Discovery+, across regions.

Shares of Dollar Tree (DLTR) slipped 5.5%, giving back a portion of the strong gains posted since the discount retailer announced earlier this week that it would sell its Family Dollar brand for $1 billion. Although analysts indicated that Dollar Tree is in a good position to attract value-conscious consumers and could see an earnings boost following its separation from Family Dollar, they pointed to potential tariff-related headwinds.

W.R. Berkley (WRB) shares surged 7.5%, notching the top performance in the S&P 500 and reaching a record high after the insurance firm announced that Japan’s Mitsui Sumitomo Insurance (MSI) would acquire a 15% stake in the company. According to a statement, MSI will purchase shares on the open market and from other third parties as it accumulates its position. The news release indicated that the agreement will not affect the firm’s day-to-day operations.

Shares of Welltower (WELL), a real estate investment trust (REIT) focused on medical facilities and other health care infrastructure, added 2.3% after credit rating agency S&P Global upgraded its issuer rating. Welltower has improved its balance sheet and is expected to see additional improvement in its credit metrics over the next two years.

American Water Works (AWK), the largest regulated water and wastewater utility in the U.S., announced a plan to invest around $40 billion in its national infrastructure over the coming decade. Shares of the company advanced 2.2% on Friday.

This coming Wednesday, April 2, the global economy could take a lasting turn for the worse. 

American investors and civilians alike have been sweating the ongoing threat of tariffs for more than a month now. And next week could hold the most impactful tariff announcement of all…

If the U.S. and its trading partners walk away from the negotiating table without securing many helpful deals, worldwide trade could freeze. The global economy could plunge into a recession, and stocks could crash into a nasty bear market. 

The financial fallout could be devastating… meaning now is the time to prepare for that potential outcome.

Now, what exactly is about to take place?

“Liberation Day.” 

Of course, that’s what U.S. President Donald Trump is calling it. On Wednesday, April 2, he is set to announce a huge new batch of tariffs that could reshape the global economic system, liberating America from bad trading deals, as he sees it. 

But those tariffs – if they stick around – could have a significant impact on the economy. They could drag us into a recession as bad as – or perhaps even worse than – that of the 2008 financial crisis. 

Here’s why… 

The Potential Outcome of More Sweeping Tariffs

Tariffs are a tax on imports. That means that any U.S. company that imports any good or material will now pay more for it if it is tariffed. And on “Liberation Day,” Trump promises to enforce tariffs on a lot of different imports. 

Companies will be forced to either absorb those higher costs (and shrink profit margins), pass on those higher costs to consumers (and raise inflation), reorganize supply chains (and cause business disruptions), or some combination of the three. 

No matter which path U.S. companies choose, a negative growth shock is likely. 

Look no further than the Institute of Supply Management’s Manufacturing and Services recent surveys from February 2025. They are arguably the two most widely followed business sentiment surveys for the U.S. economy’s manufacturing and services sectors. 

Therein, one accommodation and food services firm said:

“Tariff actions have created chaos in information and pricing measures, forecasting and forward buys, which may artificially inflate purchases to be followed by a drop off.” 

A construction firm noted: 

“Implementation of tariffs will have a significant cost impact to our projects. The majority of the capital equipment we purchase is not manufactured in the U.S., or components that make the equipment come from overseas manufacturers. We are also seeing U.S. prices already rise in anticipation, which is a similar reaction of the U.S. suppliers when the previous tariffs were introduced.”

An information services company commented: 

“Tariffs are going to have a ripple down effect that could severely harm our business.” 

And one machinery firm said: 

“The incoming tariffs are causing our products to increase in price. Sweeping price increases are incoming from suppliers.”

It seems inarguable. A global trade war will slow the economy. If it lasts – or gets worse – it could crush most folks’ financial wellbeing. 

And it could all come to a head in just a few days.

Below you’ll find featured rates available from our partners, followed by details from our ranking of the best CDs available nationwide.

Rates of 4.50% to 5.00% You Can Guarantee as Long as December 2026

Your ability to snag a 5.00% APY continues with Mountain America Credit Union promising that return for 18 months. Opening this CD now would lock in your rate until about October 2026.

The next-best rate is 4.65% APY, available from three competing offers that extend their rate promise into later 2025.

In the longer 1-year term, Abound Credit Union recently unveiled a 4.60% return with a 10-month rate guarantee. Or you can secure that same APY for 13 months with Vibrant Credit Union. Both of these will guarantee your rate into next year.

Extending further is Skyla Credit Union’s 21-month offer of 4.50%, which would lock in your return until Christmas 2026.

All Federally Insured Institutions Are Equally Protected

Your deposits at any FDIC bank or NCUA credit union are federally insured, meaning you’re protected by the U.S. government in the unlikely case that the institution fails. Not only that, but the coverage is identical—deposits are insured up to $250,000 per person and per institution—no matter the size of the bank or credit union.

Consider Longer-Term CDs To Guarantee Your Rate Further Down the Road

For a rate lock that extends into 2027, USAlliance Financial is paying 4.40% APY for a full 24 months, while Genisys Credit Union leads the 3-year term, offering 4.32% for 30 months.

Anyone wanting an even longer guarantee might like the leading 4-year CD, which is 4.40% from Vibrant Credit Union. Meanwhile, Transportation Federal Credit Union is also offering 4.40% APY, but on a slightly longer 5-year certificate—ensuring you’ll earn well above 4% all the way until 2030.

Multiyear CDs are likely smart right now, given the possibility of Fed rate cuts in 2025 and 2026. The central bank has so far lowered the federal funds rate by a full percentage point, and this year could see additional cuts. While any interest-rate reductions from the Fed will push bank APYs lower, a CD rate you secure now will be yours to enjoy until it matures.

Today’s Best CDs Still Pay Historically High Returns

It’s true that CD rates are no longer at their peak. But despite the pullback, the best CDs still offer a stellar return. October 2023 saw the best CD rates push above 6%, while the leading rate is currently down to 5%. Compare that to early 2022, before the Federal Reserve embarked on its fast-and-furious rate-hike campaign. The most you could earn from the very best CDs in the country then ranged from just 0.50% to 1.70% APY, depending on the term.

Jumbo CDs Top Regular CDs in 3-Year Term

Jumbo CDs require much larger deposits and sometimes pay premium rates—but not always. In fact, the best jumbo CD rates right now are worse than the best standard CD rates in all but one term we track. In the 3-year term, Hughes Federal Credit Union is offering 4.34% for a jumbo CD vs. 4.32% for the highest standard rate.

That makes it smart to always check both types of offerings when CD shopping. And if your best rate option is a standard CD, simply open it with a jumbo-sized deposit.

Where Are CD Rates Headed in 2025?

In December, the Federal Reserve announced a third rate cut to the federal funds rate in as many meetings, reducing it a full percentage point since September. But in January and March, the central bankers declined to make further cuts to the benchmark rate.

The Fed’s three 2024 rate cuts represented a pivot from the central bank’s historic 2022–2023 rate-hike campaign, in which the committee aggressively raised interest rates to combat decades-high inflation. At its 2023 peak, the federal funds rate climbed to its highest level since 2001—and remained there for nearly 14 months.

Fed rate moves are significant to savers, as reductions to the fed funds rate push down the rates banks and credit unions are willing to pay consumers for their deposits. Both CD rates and savings account rates reflect changes to the fed funds rate.

Time will tell what exactly will happen to the federal funds rate in 2025 and 2026—and economic policies from the new Trump administration have the potential to alter the Fed’s course. But with three Fed rate cuts already in the books, today’s CD rates could be the best you’ll see for some time. That makes now a smart time to lock in the best rate that suits your financial timeline.

Daily Rankings of the Best CDs and Savings Accounts

We update these rankings every business day to give you the best deposit rates available:

Important

Note that the “top rates” quoted here are the highest nationally available rates Investopedia has identified in its daily rate research on hundreds of banks and credit unions. This is much different than the national average, which includes all banks offering a CD with that term, including many large banks that pay a pittance in interest. Thus, the national averages are always quite low, while the top rates you can unearth by shopping around are often five, 10, or even 15 times higher.

How We Find the Best CD Rates

Every business day, Investopedia tracks the rate data of more than 200 banks and credit unions that offer CDs to customers nationwide and determines daily rankings of the top-paying certificates in every major term. To qualify for our lists, the institution must be federally insured (FDIC for banks, NCUA for credit unions), the CD’s minimum initial deposit must not exceed $25,000, and any specified maximum deposit cannot be under $5,000.

Banks must be available in at least 40 states. And while some credit unions require you to donate to a specific charity or association to become a member if you don’t meet other eligibility criteria (e.g., you don’t live in a certain area or work in a certain kind of job), we exclude credit unions whose donation requirement is $40 or more. For more about how we choose the best rates, read our full methodology.

Hello, Reader.

Before we get to today’s Smart Money, I want to thank everyone who joined us for our urgent Technochasm briefing on Thursday.

This is where I joined my InvestorPlace colleagues Louis Navellier and Luke Lango to discuss the divide between the “haves” and “have nots” in the market – and in our society. And it’s all being fueled by artificial intelligence.

During that broadcast, we delivered a step-by-step playbook you need to follow to make the most of this opportunity. Check out a free replay here.

And now that we’ve arrived at the weekend, the first full week of spring has come and gone.

During this time, maybe many of you tackled the seasonally daunting “Spring Clean,” confronting typically sealed junk drawers and closet doors. You know, those abandoned spaces home to chargers of cell phone models past… or a dusty collection of DVDs, cassettes, and their players.

These items have seen their heydays come and go, finding themselves obsolete (or close to it)

This technology cycle is normal. But according to Bill Gates, humans may soon join this list of the obsolete.

In a recent interview, the former CEO of Microsoft Corp. (MSFT) said that he believes humans won’t be needed “for most things.” Over the next decade, Gates said, “great medical advice [and] great tutoring” will become free and commonplace.

And it’s all because of AI… especially now that we’re seeing the rise of physical AI.

And one company is leading the charge.

So, in today’s Smart Money, let’s take a look at this company’s recent physical AI advancements.

Then, I’ll share a timely way that you can take advantage of the growing opportunity in physical AI.

Let’s dive in…

AI, Robot

As its name implies, “physical” AI brings together the digital and physical worlds. It allows autonomous machines like robots and cars to perceive, understand, and perform complex tasks, as the kids say… IRL.

Last week, Nvidia Corp. (NVDA) hosted its annual GPU Technology Conference (GTC). That’s where the AI chip maker showcases its latest hardware, software, and services, drawing together developers, engineers, researchers, and more.

But this year, Nvidia CEO Jensen Huang wasn’t joined onstage by an engineer or researcher during his keynote address. Instead, he was accompanied by “Blue,” a small, physical AI robot reminiscent of Pixar’s Wall-E.

Source: Tech Startups

Blue is built to redefine robotic movement and learning, improving precision in simulations and real-world interactions. It is powered by a physics engine made in partnership with the Walt Disney Co. (DIS) and Google DeepMind.

Blue interacted with Huang onstage, following his direction to move around. (Despite Gates’s warning… keynote speaking, at least, remains very much on our human “can do” list. Blue could only engage vocally with robotic chirps.)

In the beginning of the year, Nvidia launched a new family of foundational AI models called Cosmos, which are specifically designed to train physical AI robots like Blue to navigate the real world.

And at the GTC event, the company released new iterations of the Cosmos models. This includes the world’s first reasoning model for physical AI development.

“Just as large language models revolutionized generative and agentic AI, Cosmos world foundation models are a breakthrough for physical AI,” Huang said. “Cosmos introduces an open and fully customizable reasoning model for physical AI and unlocks opportunities for step-function advances in robotics and the physical industries.”

Physical AI and Your Portfolio

The development of physical AI will have enormous consequences for real-world tasks (and, as Gates predicts, for all of us).

That is why Louis, Luke, and I just released a brand-new special report that details our top three picks prepared to dominate the physical AI space. You can learn how to access this report in our special Technochasm broadcast.

Alongside physical AI, we’re also beginning to see the rise of AI agents. AI agents are essentially like the brain behind a smart assistant or AI robot. These AI models will be able to independently navigate the digital world – analyzing vast amounts of data, making real-time decisions, and executing complex workflows.

These two emerging forms of AI will quickly impact our daily lives in big ways, creating a divide – a Technochasm – so sharp that investors will either leap ahead… or get left behind.

Louis, Luke, and I will keep finding the companies set to benefit from the rise of both physical AI and AI agents… and can help you keep on the right side of the growing technology divide.

Click here for free broadcast and learn more.

Regards,

Eric Fry

There was bone marrow. There was duck confit. Now beef tallow is the cooking medium of the moment. 

Tallow—basically, beef fat cooked down to solid form—is coming up in food conversations across the country these days. It was a hot topic at a restaurant convention in New York City earlier this week, and Health and Human Services Secretary Robert F. Kennedy Jr. recently scarfed down fries cooked in the fat at a Steak ‘n Shake in Florida.

Fans laud its flavor and tout health benefits, arguing for its superiority to seed oils like canola and vegetable oil. The ingredient is showing up on a growing number of restaurant menus, in packages of chips and frozen fries, and even in beauty products. 

“I hear about it all the time,” said Brian Goodman, who sells meats to restaurants for New Jersey-based distributor Marx Foodservice, which specializes in antibiotic-free, pasture-raised beef from New Zealand. “I have four people looking for it as we speak.”

Americans’ moves toward tallow may be a matter of palate preferences, ideological leanings—Kennedy, a Trump appointee, has boosted the slogan “Make America Healthy Again”—or efforts to eat healthier. 

Diners’ motivations aside, it seems to be catching on in restaurants. Mentions on menus rose more than 40% from late 2023 to late 2024, according to Technomic, a food service insights firm. Steak ‘n Shake said this spring that it was moving away from seed oils and cooking fries, onion rings and chicken tenders in tallow instead.

Kennedy said a number of restaurants, including Popeyes, Outback Steakhouse and Buffalo Wild Wings, have or are in the process of transitioning away from seed oil while dining at Steak ‘n Shake on Fox News. (All three restaurants say in allergen guides that beef tallow or shortening may be used to prepare some dishes.)

“We want to do everything that we can to incentivize these companies to be transparent, to switch over from ultraprocessed food,” Kennedy said on Fox News earlier this month in Florida.

It’s far from a staple. The portion of tallow produced for human consumption each year has grown from about 16% to 17% over the past decade, according to the North American Renderers Association, a trade group. Datassential, a food service insights firm, expects the ingredient to land on 8% of menus in the next four years, though it’s currently on less than 1%.

Both tallow and seed oils are processed foods, according to nutritionists. Research shows that animal fats have more saturated fatty acids–which are known to increase cholesterol and the risk of developing heart disease, according to Sander Kersten, director of Cornell University’s Division of Nutritional Sciences–than seed oils.

Tallow’s adherents see it as less processed than seed oils, and say it contains fat-soluble vitamins and nutrients, such as choline and conjugated linoleic acid, that curb hunger and improve metabolism. 

NARA members have noticed an uptick in demand for cooking-grade tallow. Food distributors say they’re trying to accommodate growing demand. 

Maximum Quality Foods, a New Jersey-based distributor, is searching for a way to provide the product for halal kitchens, owner Gary Roccaro said. Goodman said Marx Foodservice wants to start a tallow line. The current craze reminds him of a period roughly 15 years ago when duck fat became trendy. (Animal fats can have higher smoke points than seed oils, which helps prevent burning, and impart a distinct taste, he said.)

Beef tallow can be less expensive than duck fat, Goodman said. Still, the product can get pricey, with shops offering tallow made from grass-fed, organic cattle for as much as $30 per pound on Etsy.  A five-ounce pack of tallow-fried chips can sell from about $6.50 to as much as $15 online.

 “Everybody was taking duck fat and cooking potatoes in it,” Goodman said. “With beef tallow it’s the same thing. But duck fat is now $44 for three pounds—and tallow is half the price.”

Restaurant vendors also report more questions about tallow. Customers used to ask whether Frylow, a ceramic device placed in deep fryers to extend oil life, works with beef tallow once every couple of years, CEO Bradley Mart said at a trade show this week. (It does, he said.) That changed about six months ago.

“Here at the show, we’re getting it twice a day, three times a day,” Mart said at the Javits Center in Manhattan.

Why the AI Boom Isn’t like the Dot Com Era – and What Comes Next

Earlier this week marked a significant milestone in market history.

It was 25 years ago on March 24, 2000, that the Dot Com bubble burst.

On that day, the S&P 500 posted a record level it wouldn’t see again until 2007.

The S&P lost almost half its value before it reached its nadir on October 9, 2002.

The tech-heavy Nasdaq was hit even harder. From its peak on March 10, 2000, the index would drop almost 78% to its bottom on the same date, October 9, 2002.

It wouldn’t recover for more than 15 years.

Many people compare the current AI investing megatrend to the Dot Com bubble. They warn that the AI megatrend is going to have a similar bust soon, and it will be just like 2000 all over again.

Another 15 years lost as the market slowly recovers.

But the comparison doesn’t hold up.

Why This is Not a “Dot Com” Market

The poster child for the Dot Com Bubble is Pets.com. This was an online pet supply retailer, much like Chewy today. Older investors may recall its Super Bowl ad featuring a sock puppet mascot.

In 2000, its IPO had them trading at $11 a share. But they were losing money fast from Day 1 and went bankrupt that same year.

During the Dot Com bubble, companies focused on “eyeballs first” rather than profits. But in too many cases, the profits never materialized.

In contrast, the AI Megatrend winners are companies that are expanding earnings with AI. The poster child is, of course, Nvidia (NVDA).

NVDA has beaten EPS estimates every quarter since the beginning of 2023.

Source: Alphaquery.com

But just because the AI Megatrend isn’t a bubble that doesn’t mean there isn’t danger lurking.

If you’re not careful, you could fall into a familiar trap.

Market Echoes from 2020

It was back in 2020 that InvestorPlace’s big three analysts – Louis Navellier, Luke Lango and Eric Fry – started to warn people about the “Technochasm.”

If you’re not familiar, the Technochasm refers to the vast wealth divide in the United States that is caused, in large part, by technology.

At the heart of this warning was a prediction – the future will be populated by two types of people: those who invested in top tier tech companies who would watch their portfolios grow, and those who didn’t invest in tech, or simply held old-school stocks for much too long, who would watch their balances shrink.

Credit: TarikVision

The skyrocketing inflation of the Biden years only made this warning more ominous. Folks who didn’t own the best tech assets watched the value of their portfolios stagnate or even erode.

This week, our analysts doubled down on this warning.

And the stakes are higher than they’ve ever been.

America’s Best in a Race to the Top

On his first day in office, President Donald Trump rescinded President Joe Biden’s executive order that sought to restrict the development of more powerful generative AI tools.

On his second day in office, Trump met with executives from leading technology firms including Sam Altman, CEO of Open AI; Larry Ellison, chairman of Oracle; and Masayoshi Son, CEO of SoftBank. Together, they announced “Project Stargate” – a $500 billion private sector investment in AI infrastructure.

“Beginning immediately, Stargate will be building the physical and virtual infrastructure to power the next generation of advancements in AI, and this will include the construction of colossal data centers,” Trump said.

America hasn’t undertaken a project this important since the Manhattan Project – the effort that developed the atomic weapon during World War II.

The brightest minds and most powerful companies in America are all working to ensure that the most powerful technology of our time is controlled by U.S. companies. 

This effort could lead to nearly a trillion dollars of funding and investments into a specific corner of the markets over the next few years.

When that much money is moving around, there are select opportunities for investors to build their wealth quickly. A small handful of stocks could be the biggest winners as this money starts to spread throughout the economy and the stock market. 

The gains we’ve seen from the first two years of the AI Megatrend have been impressive, but the coming gains could be bigger still. 

In this exclusive presentation, Louis, Luke and Eric show the “smoking-gun” evidence that we are nowhere near the top of this epic bull run in AI.

Bottom Line: if you missed out on the big gains from AI stocks since 2023, you have a rare second chance to get in on some of the most innovative companies in the world – through the AI Revolution Portfolio. Our three analysts believe their latest batch of picks easily has triple-digit upside in just a handful of months.

In this presentation, Louis, Luke and Eric reveal why nearly a trillion dollars of new investments could soon flood two little-known corners of the AI Revolution… how it could accelerate the lucrative AND destructive force behind the Technochasm… and what you need to do to prepare (and profit).

The AI Megatrend isn’t the Dot Com bubble.

Your biggest risk may be hesitating to take advantage of this rare second chance opportunity to grow your wealth.

Enjoy your weekend,

Luis Hernandez

Editor in Chief, InvestorPlace

Half of Redfin’s 10 “hottest” neighborhoods so far this year are in the Midwest, with several coastal areas also making the list, according to a report earlier this week.

The real estate brokerage said it looked at year-over-year views of listings on its website in 150 of the most populous metro areas through the end of February to compile its ranking of “hot” neighborhood ZIP codes, along with several other factors including median sale prices.

Prospect Heights and Clinton Hill in Brooklyn, N.Y., where home sales doubled from the year prior, topped Redfin’s list. Two other New York neighborhoods also made the list, with upstate village Fairport in fourth place, and Great Kills in New York City placing sixth. Both saw median listing views more than double from the same period last year.

Jenison, Mich. and the ZIP code that is home to Campton Hills and St. Charles, Ill. came in second and third on the list, respectively. Jenison boasted almost 140% growth in median listing views from last year, while the Illinois neighborhoods outside of Chicago experienced an almost 40% increase in home sales. Redfin said suburbs in the Midwest have seen a surge in popularity as homebuyers look for affordability and an easy commute to major metros.

Three other Midwest neighborhoods—Milwaukee suburb Franklin, Wis.; Prairie Village and Mission Hills, Kan.; and Twin Cities suburb Lakeville, Minn.—took the seventh, eighth, and ninth spots, respectively. Redfin noted there aren’t enough homes for sale to keep up with demand in many of these Midwestern markets, making them highly competitive.

Other top neighborhoods so far this year include Polk Gulch and Russian Hill, Calif., located in the heart of San Francisco, where homes have a median sale price of $1,065,000, up 10% year-over-year.

Bowie, Md. outside of Washington, D.C. rounded out the top ZIP codes with a more than 30% increase in home sales over last year.

There’s one word that has the uncanny ability to put Wall Street on edge these days.

Utter it once, and investors are spooked. Markets are thrown into a tailspin.

Tariffs.

But it’s not just investors – company executives are concerned, too. Consider this from FactSet. More than half of the S&P 500 companies (259 to be exact) mentioned “tariffs” in their earnings calls from December 15 to March 6. That’s the most in 10 years.

So, I think it’s safe to say a lot of folks are concerned about Trump 2.0’s tariffs. Everyone is nervous about the impact it will have on consumer goods prices. 

What’s more, people worry the tariffs will drag on growth. Add these two together, and it could cause the Federal Reserve to delay cutting key interest rates.

So, I’d like to talk about the ongoing tariff spats in today’s Market 360.

The reality is I expect the uncertainty surrounding the Trump 2.0 tariffs, inflation and economic growth to begin dissipating soon. That’s because once April 2 rolls around – or as President Trump calls it “Liberation Day” – we should get a lot more clarity on the situation.

So, today I’ll cover the latest developments. Then, I’ll explain what the real goal is behind these tariff threats – and why I don’t think investors should be too concerned.

You see, it’s all part of a larger strategy to rebalance the way we do business – and set the stage for a U.S. economic renaissance.

To wrap things up, I’ll explain how I think you can best position yourself to profit.

What’s Happened So Far

Here’s a quick rundown of where things stand.

You may recall that President Trump imposed 25% tariffs on Canada and Mexico as well as 10% on China last month. Initially, Canada and Mexico were able to negotiate deals to delay the tariffs, but they ultimately went into effect on March 4.

China’s 10% tariffs, however, were imposed right away on February 4, and were later raised to 20%.

Then came a 25% tariff on imported steel and aluminum, followed by a retaliatory threat from the European Union – $28 billion in counter-tariffs on U.S. goods. Trump responded with the possibility of a 200% tariff on European spirits.

This past Tuesday, he signed an executive order placing a 25% tariff on oil imports from countries that buy directly from Venezuela. And on Wednesday, he announced a sweeping 25% tariff on foreign-made vehicles and certain auto parts.

But here’s the kicker, folks.

Alongside these measures, President Trump made some vague references to placing “reciprocal” tariffs directly on U.S. trading partners and allies.

The deadline: April 2 aka “Liberation Day.”

What’s Behind “Liberation Day”?

That really put investors on edge. But this week the White House clarified that those tariffs will be more targeted than initially feared. Trump 2.0 is focusing on a list of 15 countries that have had persistent trade imbalances with the U.S.

Treasury Secretary Scott Bessent has dubbed them the “dirty 15.”

Among those countries? China, Mexico and Vietnam.

Mexico’s trade surplus with the U.S. has ballooned in recent years – in part because China has used Mexico as a workaround, doing subassembly there and importing under the old NAFTA structure.

Vietnam, which now has the third-largest U.S. trade surplus after China and Mexico, has already responded. It announced it would lower tariffs on certain U.S. products like liquefied natural gas and vehicles – a clear sign that countries are preparing to negotiate rather than retaliate.

And that’s the point here, folks. The hysterical financial media has promoted the narrative that these tariffs will be catastrophic for the U.S. economy – and that President Trump is hellbent on destruction.

Nothing could be further from the truth.

This is all about leverage, plain and simple.

For example, let’s consider the 25% tariff on imported vehicles.

Trump’s executive order applies the tariff across the board, but there’s an important carve-out. Under the United States-Mexico-Canada Agreement (USMCA), the tariff will only apply to non-U.S. content in vehicles. This is a detail that rewards companies that already manufacture more of their vehicles here at home.

Trump has long encouraged automakers to shift production to the U.S. He’s noted that the U.S. offers cheaper electricity and labor costs, as well as less oppressive regulations.

Now, with these new tariffs, companies like BMW, Mercedes-Benz Group AG (MBGYY) and Volkswagen AG (VWAGY) will have even more incentive to expand their U.S. manufacturing footprint.

What’s the Endgame?

This strategy isn’t limited to cars.

So far, $1.2 trillion in technology onshoring has already been announced. If pharmaceutical and auto companies follow that lead, we could be looking at several trillion dollars in new domestic investment.

That’s the goal here, folks. At the heart of it, Trump’s tariff strategy is two-fold:

1. Level the playing field – “What they charge us, we charge them.”
2. Encourage onshoring to avoid tariffs altogether.

Both goals are designed to strengthen the U.S. economy – and both are already working.

The fact is, once the April 2 “Liberation Day” deadline passes and the rules of the road are better understood, much of the uncertainty plaguing the market should fade away. Clarity, optimism and strong corporate earnings – along with lower interest rates on the horizon – could give stocks the push they need to move higher.

The Bottom Line

So, if clarity is coming, but things are still volatile and uncertain right now, how should you invest?

The answer is simple: Buy fundamentally superior stocks that bounce!

Right now, we’re closing out the first quarter. And that means quarter-end window dressing is in full effect.

This is when institutional money managers clean up their portfolios before client meetings by dumping underperformers and piling into the best names.

That’s where my Accelerated Profits Buy List shines. My stocks are characterized by 155.6% forecasted annual earnings growth and 26.7% forecasted annual sales growth – and they’re backed by strong analyst revisions, which typically lead to earnings surprises.

These are the stocks that hold up when the market gets choppy – and sprint ahead when things turn around.

So, I don’t want you to let the tariff headlines throw you off track.

See, this is all a part of an effort to push for fairer trade, to encourage onshoring and put in place policies that will create long-term growth.

The reality is that once everything is in motion, I expect growth to accelerate drastically – especially as Trump 2.0 clears away more red tape and unleashes the next wave of innovation in the AI Revolution.

You see, I think we’re about to see a massive convergence between Trump’s pro-business policies and the seemingly exponential progress of AI. And as this Trump/AI Convergence happens, I expect it to unlock powerful gains for investors.

My Stock Grader system (subscription required) has identified the companies best positioned to thrive in this new era – stocks with superior fundamentals and persistent institutional buying pressure.

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Sincerely,

Louis Navellier

Editor, Market 360