All posts by PARKERYL

There’s no way to sugarcoat it. The market’s a disaster right now, folks.

The tariffs on Canada and Mexico, as well as the 20% tariffs on China, have sent the stock market spiraling lower in March. Even though President Trump backpedaled and postponed some of the tariffs on Canada and Mexico until April, it was too little, too late for many investors.

The S&P 500, Dow and NASDAQ have all erased their post-election gains. In fact, in the first six trading days of March alone, all three indices fell more than 4%.

Breaking news keeps jerking the market around, too. The markets fell this morning after President Trump announced even bigger tariffs on Canadian aluminum and steel – only to stage a rebound as news broke that Ukraine agreed to a 30-day ceasefire negotiated by the United States if Russia accepts the plan.

But believe it or not, a future billionaire is making their first move today.

George Washington once said that when you have a people who are “possessed by the spirit of Commerce,” they can achieve anything.

I don’t think our first president would realize just how true those words were.

Consider Jeff Bezos. At 30 years old, he quit a cushy Wall Street job to sell books online – at a time when most people barely used the internet.

Now, Amazon.com, Inc. (AMZN) dominates global commerce… and Bezos has a $215 billion net worth.

Or Bill Gates. He dropped out of Harvard to build software. Most people didn’t even own a computer back then.

Today, Microsoft Corporation (MSFT) is a $3 trillion giant… and Bill Gates is worth about $108 billion.

Mark Zuckerberg… Elon Musk… I could go on.

These guys weren’t lucky. They didn’t become billionaires overnight. They were talented, worked hard, and took advantage of life-changing opportunities whenever circumstances (or fate) came along.

They are the epitome of the American dream.

Now, I am no Bill Gates or Jeff Bezos. Frankly, I am also more of a “car guy” than a “rocket ship guy.”

However, I do like to say that my life story is also the embodiment of the American dream.

I wasn’t born with a silver spoon in my mouth. I’m the son of a stone mason and the first in my family to go to college. Today, I live a lavish lifestyle – and it’s all thanks to the market-beating system I created over four decades ago.  

Believe it or not, I stumbled onto this system by accident when I “failed” a specific assignment at Cal State Hayward in the late ’70s.

So, in today’s Market 360, I want to tell you about the failed assignment that started it all for me. I’ll explain how it led me to create a system that would find some of the market’s biggest winners over the past few decades.

In fact, it helped me find NVIDIA Corporation (NVDA) when it was trading at just $1 (split-adjusted) in 2016. We all know what happened after that – the stock went up by more than 7,000% at its peak.

Then, I’ll wrap things up by telling you about the 50X profit opportunity my system is alerting me to today… and where you can learn more about it.

Written by Steven Dooley, Head of Market Insights, and Shier Lee Lim, Lead FX and Macro Strategist

USD hits pre-election lows

Global markets fell again yesterday with the US’s Dow Jones down 1.1%, UK’s FTSE 100 falling 1.2% and Japan’s Nikkei dropping 0.6%.

Rising global recession fears, equity market volatility and weaker growth indicators have driven a shift toward safe-haven assets with the Japanese yen and Swiss franc outperforming.

Unusually, the US dollar has not benefited from these safe-haven flows, with markets instead worried about the prospects for US growth.

The AUD/USD climbed from one-week lows with a 0.2% gain but remains broadly within the six-week old trading range between 0.6200 and 0.6400.

Similarly, the NZD/USD recovered within its recent trading range between 0.5600 and 0.5775.

In Asia, the moves were more significant. USD/SGD fell back to the lowest level since 11 November.

The USD/CNH fell to the lowest level since 19 November.

US inflation in focus tonight

Technically, the US dollar index remains relatively weak with the market still below its 50-day and 200-day EMAs. 

Tonight, US consumer prices will be revealed at 11:30pm AEDT.

After a robust reading of 0.446% in January, core CPI inflation probably slowed somewhat to 0.287% m-o-m in February, although it most certainly stayed above the December level of 0.210%.

We anticipate that core PCE inflation (to be released later this month) stayed high in February at 0.282% m-o-m.

The Fed will probably continue to monitor inflation concerns if the print matches our prediction. 

The USD index is now at a four-month low, with next key support at its weekly 200-day EMA of 102.58.

Korea’s artificial job market masks KRW weakness

Today, the Korea unemployment rate will be revealed at 10:00 AEDT. As the labor market improves, we anticipate that the unemployment rate will slightly decline once again, from 2.9% in January to 2.8% SA in February.

The service sector probably kept adding employment as a result of the government’s frontloading fiscal expenditures, offsetting job losses in the manufacturing and construction sectors.

We retain negative outlook on KRW, which may see USD/KRW move higher in the short-term.

USDKRW is currently at its three-month low.  The USDKRW pair has rebounded from its 50-day EMA support of 1443.09, which may be attractive to USD buyers.

The next level of key support for USDKRW is at its 200-day EMA of 1403.63.

USD sees losses across Asia

Table: seven-day rolling currency trends and trading ranges  

Key global risk events

Calendar: 10 – 15 March  

All times AEDT

Have a question? [email protected]

*The FX rates published are provided by Convera’s Market Insights team for research purposes only. The rates have a unique source and may not align to any live exchange rates quoted on other sites. They are not an indication of actual buy/sell rates, or a financial offer.

​Some of Solana’s (SOL) largest players are quietly but strategically moving into one altcoin that could outperform the whole market as the larger crypto market prepares for the next significant bull run. With whispers of a 17,466% increase, the smart money is moving into Rexas Finance (RXS), the innovative blockchain platform revolutionizing real-world asset (RWA) tokenization.

The Hidden Movement: Why Sol Whales Are Building RXS Stockpiles

Whales in the Solana ecosystem and institutional investors have a history of spotting high-upside cryptocurrencies before they blow up. According to the most recent estimates, these big companies are discreetly building Rexas Finance (RXS) in anticipation of its official debut on June 19, 2025. Why, though, is RXS the secret weapon on their portfolios? Real-world asset tokenization—a $121 trillion market poised to reshape conventional finance—allows investors to access assets such as real estate, commodities, and intellectual property, transforming the financial landscape.

From $0.03 to $0.20, explosive presale growth—a 566% surge 

Before Beginning From Stage 1 to Stage 12, Rexas Finance has been among the presales in crypto history with the highest rate of growth, seeing an incredible price rise:

• First stage (starting price): $0.03
• Stage 12: $0.20 (Current Price)
• Launching price for June 19, 2025: $0.25

This fantastic 566% rise during the presale alone is evidence of RXS’s strong foundations and expanding demand. 90.54% of Stage 12 is already sold out suggests that investors—especially those within the Solana and Ethereum ecosystems—are sprinting to grab their spots before the price climbs much higher at launch.

Why might RXS see a 17,466% increase by 2025?

With analysts projecting RXS to soar by over 17,466% in the next seven months, this is a possible 100x investment. These are the reasons:

1. Tokenizing Real-World Assets: Future of Asset Investment

Rexas Finance closes the gap between blockchain and actual assets unlike conventional cryptocurrencies concentrating on speculation. Its forward-looking ecology lets investors:

• Tokenize companies, assets, and goods.
• Own fractions of valuable assets.
• Gain from open, quick, worldwide investing prospects.

With this revolutionary utility, RXS is positioned as a game-changer in the $121 trillion RWA industry.

2. Notable Demand from Retail and Institutional Investors

Institutional investors have taken notice of real-world asset tokenization, and Solana’s largest participants are spearheading the movement. Assets, like tokenized real estate and fractionalized ownership of gold and commodities, will become standard as conventional markets start, including blockchain technology. Rexas Finance has the facilities to enable this, and institutional investors are noticing—accumulating RXS before its introduction in expectation of a significant supply constraint. They are anticipation

3. Strong and Limited Tokenomics RXS ensures with a well-organized supply model:

• A small token supply, therefore lowering the inflationary pressure.
• A deflationary approach that, over time, raises scarcity.
• A built-in incentive mechanism encouraging long-term ownership.

Whales are deliberately gathering before normal investors catch on because of this shortage.

4. CertiK Security Audit and institutional trust building

The successful audit by CertiK, one of the most reputable security companies in cryptocurrency, by Rexas Finance is one of the main elements drawing high-net-worth investors in. For institutional players who want risk reduction before making significant investments, a CertiK-verified project guarantees security and trust, thus appealing.

5. A multifarious ecosystem ready for explosive expansion.

Unlike many crypto initiatives with a single use, Rexas Finance presents a completely integrated ecosystem supporting several investment possibilities:

• A no-code tool for tokenizing actual assets is Rexas Token Builder.
• The safe and open Rexas Launchpad is for funding fresh tokens.
• Rexas GenAI is an NFT creation driven by artificial intelligence for content creators and artists.
• Rexas DeFi — A decentralized trading solution for cross-chain crypto swapping.
• A novel real estate co-ownership and passive income model is Rexas Estate.
• Rexas Treasury is a multi-chain yield optimizer best for maximizing returns.

Given its varied ecosystem, RXS is not only a token but a whole financial infrastructure that qualifies highly for long-term expansion.

Are Solana Whales Betting Big—should you?

Whales and institutional players starting to gather usually indicate that a significant price breakthrough is just around. Originally spotting Solana before its explosive rise in 2021, the same investors are now investing in Rexas Finance on a 17,466% price explosion in 2025. With a launch price of $0.25 and a presale at 90.54% completion, early access is fast closing. Investing now could mean turning $1,000 into over $175,000 in just seven months, assuming the analysts’ forecasts come true.

Conclusion

Real-world usage will propel the next cycle of cryptocurrencies, so Rexas Finance is leading in this movement. Whales gathering before launch, tokenized assets becoming the new norm, and a launch price set at $0.25 position RXS for an unheard-of bull run. 

For more information about Rexas Finance (RXS) visit the links below:

Website: https://rexas.com

Win $1 Million Giveaway: https://bit.ly/Rexas1M

Whitepaper: https://rexas.com/rexas-whitepaper.pdf

Twitter/X: https://x.com/rexasfinance

Telegram: https://t.me/rexasfinance ​

Disclaimer: The views and opinions presented in this article do not necessarily reflect the views of CoinCheckup. The content of this article should not be considered as investment advice. Always do your own research before deciding to buy, sell or transfer any crypto assets. Past returns do not always guarantee future profits.

Updated on March 11th, 2025 by Bob Ciura

There are a number of high-quality investment opportunities available in Canada for purchase by United States investors.

In fact, the TSX 60 – Canada’s stock market index of its 60 largest companies – is full of potential investment opportunities. You can download your list of TSX 60 stocks using the link below:

 

One of the complicated factors of investing in Canadian stocks for U.S. residents is the tax implications.

Are Canadian stocks taxed just like their United States counterparts, or are there significant differences?

Do taxes need to be paid to both the IRS and the CRA (the Canadian tax authority), or just the IRS?

This guide will tell you exactly what the tax implications of investing in Canadian securities are before discussing the most tax-efficient way to buy these stocks and directing you to other investing resources for further research.

Table of Contents

You can jump to a particular component of this guide using the links below:

Capital Gains Tax Implications for Canadian Stocks

Capital gains taxes are the most simple components of investing in Canadian stocks. There are two cases that need to be considered.

The first is when you’re investing in Canadian companies that are cross-listed on both the Toronto Stock Exchange and the New York Stock Exchange (or another U.S. securities exchange). In this case, your best decision is to purchase the USD-denominated shares of Canadian stocks.

In this case, calculating and paying the capital gains tax that you pay on your investments is exactly the same as for “normal” United States stocks.

The second case to consider is when you’re investing in companies that trade exclusively on the Toronto Stock Exchange. In other words, this case covers stocks that trade in Canada but not on any United States exchange.

In order to buy these stocks, you’ll be required to convert some money over to Canadian dollars to purchase these investments.

The capital gains on which you’ll pay tax will require some manual calculations because they will be the difference between your cost basis and your sales price – both measured in US Dollars.

The cost basis of your investment, as measured in US Dollars, will be based on your Canadian Dollar purchase price and the prevailing exchange rates at the time of the investment.

Similarly, your sale price (measured in US Dollars) will be determined by multiplying your Canadian Dollar purchase price by the prevailing exchange rate at the time of sale.

Once you understand how to calculate the capital gains on which you’ll be required to pay tax on, the calculation of the capital gains tax is the same as for U.S.-domiciled securities.

There are two different rates for capital gains, depending on your holding period:

• Short-term capital gains are defined as capital gains on investments held for 1 year or less and are taxed at your marginal tax rate.
• Long-term capital gains are defined as capital gains on investments held for more than 1 year and are taxed at 15% (except for investors that are in the highest tax bracket, who pay a long-term capital gains tax rate of 20% – still significantly lower than the equivalent short-term capital gains tax rate).

Although this may seem complex, capital gains taxes are actually the most simple tax component of investing in Canadian stocks.

The next section discusses the tax treatment of Canadian dividends before later describing the most tax-efficient way for investors to purchase these stocks.

Dividend Tax Implications for Canadian Stocks & The Dividend Tax Treaty

Dividend taxes are where owning Canadian securities becomes more complicated from a tax perspective.

The reason for this is two-fold.

First, the Canadian government actually claims some tax on dividends paid to United States residents (and residents of all other non-Canadian countries).

More specifically, the Canadian tax authority, which is called the Canada Revenue Agency, generally withholds 30% of all dividends paid to out-of-country investors.

Fortunately, this 30% is reduced to 15% thanks to a tax treaty shared by Canada and the United States. This also comes with additional complicating factors which are explained in Publication 597 from the IRS:

“Dividends (Article X). For Canadian source dividends received by U.S. residents, the Canadian income tax generally may not be more than 15%.

A 5% rate applies to intercorporate dividends paid from a subsidiary to a parent corporation owning at least 10% of the subsidiary’s voting stock. However, a 10% rate applies if the payer of the dividend is a nonresident-owned Canadian investment corporation.

These rates do not apply if the owner of the dividends carries on, or has carried on, a business in Canada through a permanent establishment and the holding on which the income is paid is effectively connected with that permanent establishment.”

For all practical purposes, the only actionable knowledge that you need to know about the withholding rates on Canadian dividends is that the Canada Revenue Agency withholds 15% of every dividend paid to you from a Canadian corporation. Canada has its own form that can be submitted to request a refund of withholding tax.

The second reason why Canadian dividends are complicated from a tax perspective is their treatment by the IRS. As most readers know, quarterly dividend income generated by equity investments is taxable on your U.S. tax return.

What makes this complicated is that U.S. investors may be eligible to claim a credit or deduction against your local taxes with respect to the non-resident withholding taxes.

While this tax credit is beneficial from a financial standpoint, it adds an additional layer of complexity when investing in Canadian stocks.

For this reason, we recommend working with a tax professional to ensure that you are appropriately minimizing the taxes incurred by your investment portfolio.

Many of these tax headaches can be avoided by investing in Canadian dividend stocks through retirement accounts, which is the subject of the next section of this tax guide.

Note: Canadian REITs may still have taxes deducted in a retirement account.

Owning Dividend Stocks in Retirement Accounts

If you have the contribution room available, owning Canadian stocks in U.S. retirement accounts (like a 401(k)) is always your best decision.

There are two reasons for this.

First of all, the 15% withholding tax that is normally imposed by the Canada Revenue Agency is waived when Canadian securities are held within U.S. retirement accounts. This is an important component of the U.S.-Canada tax treaty that was referenced earlier in this tax guide.

The second reason why owning Canadian stocks in retirement accounts is the best decision is not actually unique to Canadian investments, but its worth mentioning nonetheless.

The remainder of the “normal” taxes that you’d pay on these Canadian stocks held in your retirement accounts will be waived as well, including both the capital gains tax and dividend tax paid to the IRS.

This means that holding Canadian stocks in United States retirement accounts has no additional tax burden compared to owning domestic stocks. In other words, owning Canadian stocks in a U.S. retirement account is the same as holding U.S. securities in the same investment account.

Note from Ben Reynolds: A reader recently had this to say regarding withholding tax: “From a practical perspective, those taxes are actually often withheld regardless of the treaty or law involved. This has happened to me at two different brokerages, Etrade and Schwab. In both cases, the stock was traded OTC. Never have I had a problem with an ADR, and that’s at Fidelity, Etrade, and Schwab, but with OTC Canadian stocks, you can count on 15% withholding on dividends. In my efforts to get to the bottom of this, I was able to talk to a trader at Schwab Global, who told me the issue was with the vendor that Schwab uses in Canada, who is the one who actually holds the shares. They withhold the tax, and Schwab has attempted to get them to stop that, but has been unsuccessful.”

You now have a solid, fundamental understanding of the tax implications of owning Canadian stocks as a U.S. investor. To summarize:

• Capital gains taxes are very similar to those incurred when buying United States-domiciled stocks
• The Canadian government imposes a 15% withholding tax on dividends paid to out-of-country investors, which can be claimed as a tax credit with the IRS and is waived when Canadian stocks are held in US retirement accounts.

The remainder of this article will discuss a few highlight sectors of the Canadian stock market before closing by providing additional investing resources for your use.

Where the Canadian Stock Market Shines

There are two broad sectors in which the Canadian stock market shines in terms of having excellent investment opportunities.

The first is the financial services sector. The “Big 5” Canadian banks are some of the most stable stocks in the world and are often rated as the world’s most conservative financial institutions.

There are broad, fundamental reasons for this, which largely have to do with the government’s treatment of delinquent borrowers. In Canada, a borrower is legally required to repay a mortgage even if they leave the house.

Canadians also benefit from the Canada Mortgage and Housing Corporation (CMHC), which provides mortgage insurance to borrowers who are unable to meet certain minimum down payment requirements.

With all of this in mind, Canada’s Big 5 banks are excellent investment opportunities when they can be acquired at attractive prices. They are listed below:

• The Royal Bank of Canada (RY)
• The Toronto-Dominion Bank (TD)
• The Bank of Nova Scotia (BNS)
• The Bank of Montreal (BMO)
• The Canadian Imperial Bank of Commerce (CM)

The other Canadian stock market sector that stands out is the energy sector.

Canada is an oil-rich country that houses some of the world’s most dominant energy businesses, including:

• Suncor (SU)
• Canadian Natural Resources Limited (CNQ)
• Enbridge (ENB)

While fossil fuels are on the decline, we believe there is still upside in certain high-quality energy stocks as they transition from oil-first business models to more diversified systems that incorporate multiple forms of energy, including renewables.

Final Thoughts & Other Investing Resources

As this guide shows, the tax implications of investing in Canadian stocks for U.S. investors are not as onerous as they might seem.

With that said, Canada is not the only international stock market that investors should consider searching through for investment opportunities.

Alternatively, you may look through these indices and decide that international investing is not for you.

Fortunately, Sure Dividend maintains several databases of domestic stocks, which you can access below:

• The Complete List of Russell 2000 Stocks: if you’re looking to invest in smaller companies with more growth opportunities, the Russell 2000 Index is the place to look. It is the most widely-quoted benchmark for small-cap stocks in the United States.
• The Complete List of NASDAQ-100 Stocks: the NASDAQ-100 is composed of approximately 100 of the largest non-financial companies that trade on the NASDAQ stock exchange.
• The Complete List of Wilshire 5000 Stocks: the Wilshire 5000 is often called the “total stock market index” because it contains essentially every publicly-traded security in the United States.

Searching for stocks with certain dividend characteristics is another useful method for finding investment opportunities.

With that in mind, the following Sure Dividend databases are quite valuable:

The last technique we’ll recommend for finding investment ideas is by looking into certain sectors of the stock market.

Sure Dividend maintains the following sector-specific stock market databases for your benefit:

Editor’s note: “How an Elon Musk Venture May Offer Security in the Meltdown” was previously published in February 2025 with the title, “The Best Elon Musk Venture for Unlocking 2025 Gains.” It has since been updated to include the most relevant information available.

We won’t sugarcoat it; the stock market is in turmoil right now.

Yesterday – Monday, March 10 – the Dow Jones lost almost 1,000 points. The S&P 500 dropped nearly 3%, while the Nasdaq crashed 4%. 

It was one of the worst days on Wall Street since September 2022. And it continues what has been a horrible few weeks for stocks.

The S&P has sunk 9% from its recent highs in February, essentially matching its largest correction since 2022.

The Nasdaq has crashed almost 14%, its largest correction since 2022.

The Russell 2000 has collapsed more than 17%, also matching its largest correction since 2022.

Collectively, the “Magnificent 7” tech stocks have slumped over 20%, slipping into their first bear market since – you guessed it – 2022.

This is, by most metrics, the worst stock market selloff in more than two years.

But that may also mean it’s the best buying opportunity we’ve seen in that time, too…

Be Greedy When Others Are Fearful

As Wall Street legend Warren Buffett says, it’s best to be greedy when others are fearful. 

Historically speaking, this rings true.

According to the weekly American Association of Individual Investors (AAII), investor sentiment is currently as bearish as it’s basically ever been. Since the 1980s, every time investor sentiment was as bearish as it is today, stocks always soared over the next 12 months for an average gain of nearly 30%.

Meanwhile, the Nasdaq 100 has dropped below its most important technical support line – the 200-day moving average – for the first time in over a year. It has done the exact same thing precisely 11 times before since 1990.

Every time the market played strong defense at these levels and stayed within 4% of its 200-day moving average over the subsequent two weeks, stocks always rebounded over the next 12 months, with average gains of over 25%. This happened in early 1992, early 1996, late 1997, early 2004, mid-2010, late 2014, and late 2018.

So… while stocks are in turmoil right now… the data is saying that this may end up being a great buying opportunity.

Taking a Cue From Elon Musk

To help us find the best stocks to buy amid this market meltdown, we are setting our sights on someone who probably knows more about making money than anyone else – the world’s richest man himself, Elon Musk.

Long gone are the days when Elon Musk was merely ‘the Tesla guy.’

The billionaire entrepreneur has brought electric cars to the mainstream and reimagined rocket launches and space travel. He’s working to develop brain implant technology that allows humans to control devices with their thoughts. He aims to reinvent social media with X and introduce fully autonomous humanoid robots via Tesla’s (TSLA) Optimus.

And now Musk is taking on his boldest mission yet—tackling government waste as President Trump’s head of Department of Government Efficiency (DOGE).

As if he wasn’t already powerful enough, the world’s richest man has become infinitely more influential since Donald Trump won the White House. 

A lot of investors are saying that’s a good thing for Tesla stock. And it could be. But we think investors focused on TSLA are considering the wrong Musk company for 2025. 

Of all of his ventures, Tesla is not the one positioned for the most success this year. 

That would be xAI, his AI startup. 

xAI: A Brief Overview

Founded about two years ago, xAI was created to develop foundational AI models to rival that of OpenAI’s ChatGPT and Google’s Gemini. In that time, xAI has launched several models, the latest of which – Grok-3 – just debuted in late February. And from the looks of it, the AI is quite capable.

It was developed using over 10 times the computing resources of its predecessor, Grok-2, leveraging a massive data center equipped with approximately 200,000 GPUs. The model introduces sophisticated reasoning features, which allow it to deconstruct problems into manageable components and perform self-fact-checking to ensure accuracy before providing solutions. And it also includes a new Deep Search feature – an integrated AI-powered search engine designed to reduce the time users spend hunting for information by providing detailed explanations for its responses. 

According to xAI, Grok-3 outperforms other incumbent AI models like ChatGPT, Gemini, and DeepSeek in areas such as mathematics, science, and coding. 

It seems to be a new landmark model.

And thanks to this rapid success, xAI is currently in talks to raise up to $10 billion from multiple investors at a $75 billion valuation… 

Meaning that, less than two years after it was launched, xAI is already worth more than 70% of the companies in the S&P 500. 

But this may still be just the beginning for the startup. 

Dick’s Sporting Goods (DKS) shares lost ground Tuesday when the athletic equipment retailer posted full-year projections mostly below forecasts as it dealt with a “dynamic macroeconomic environment.”

The company sees fiscal 2025 earnings per share (EPS) of $13.80 to $14.40, and revenue of $13.6 billion to $13.9 billion. Analysts surveyed by Visible Alpha were looking for $14.82 and $13.89 billion, respectively. In addition, the midpoint of Dick’s outlook of a 1% to 3% rise in comparable store sales also missed estimates. 

Executive Chairman Ed Stack said in a CNBC interview that there’s “just a bit of an uncertain world out there right now.” Stack added that “if tariffs are put in place and prices rise the way that they might, what’s going to happen with the consumer?”

Dick’s Q4 Results Top Estimates

The forecast offset the retailer’s strong fourth-quarter results. Dick’s reported EPS of $3.62 and revenue of $3.89 billion. Both were better than expected. 

Comparable store sales jumped 6.4%, and CEO Lauren Hobart explained that gave Dick’s “the largest sales quarter in company history.”

Despite today’s roughly 3.5% decline, shares of Dick’s Sporting Goods are up about 13% year-over-year.

Editor’s Note: On Saturday, we sent you the first part of a brand-new report from InvestorPlace CEO Brian Hunt, titled What to Do When the Stock Market Drops. Today, we’re going to share the conclusion. We hope you enjoy it – stay safe out there, and don’t lose heart. 

Hello, Reader.

If you haven’t had the chance yet to read up on the first part of this article, please go here now. There is critical information about bear markets that you can’t miss.

Now, you know that for every ONE problem in America, there are THOUSANDS of brilliant people working on innovative solutions. They are developing amazing products and services that will make our lives better.

These are the types of people who invented the light bulb… the television… the pacemaker… the airplane… and the iPhone.

They are people who have the brains and worth ethic to create incredible businesses like Starbucks, Facebook, Amazon, Whole Foods, Apple, Nike, and Google.

These companies have provided good jobs to millions of people… they provided goods and services to thankful customers… and they produced hundreds of billions of dollars in wealth for their shareholders. All by creating and innovating.

Even better, these kinds of folks work in America. Despite what some Debbie Downers like to say, the legendary investor Warren Buffett is right: America is still the greatest place in the world to do business.

• We have deep and liquid capital markets.
• We have rule of law.
• We have excellent accounting standards, which creates transparency.
• We encourage and foster innovation.
• We respect property rights.
• We have an excellent transportation network (if you’ve fallen for the myth that U.S. infrastructure is terrible, I urge you to visit a third world country for comparison).
• We have a huge population of well-to-do consumers ready to buy great products and services.

The advances made by American entrepreneurs allow today’s average American to live better than a king did 100 years ago.

Even people in America’s “low income” bracket have better medical care, better food, better transportation, and better access to information than anyone did in 1919, no matter what their level of wealth.

In other words, free markets, innovation, and productive enterprise has allowed mankind to achieve incredible progress despite wars, recessions, and bear markets.

It’s been that way for centuries… and it will continue to be that way in the future, despite any bear market fluctuations.

Below is a chart of the Dow Jones Industrial Index from post-World War II through 2021.

Incredible, right?

The stock market declines of 1987, 2000, and 2008 – while painful at the time – are just speed bumps on the long-term chart. And the takeaway is clear: Over time, American prosperity rises and the stock market goes up.

With this picture in mind, my advice is to “make the trend your friend” and ignore the naysayers. Don’t panic over a market correction, and don’t let the fear-stoking headline of the hour scare you out of your holdings of high-quality innovative companies that are poised to change the world.

During stock market corrections, I ask you to focus on what really matters: progress, transformational industry trends, creating value for others, and innovation.

Remember that despite all the negative occurrences of the past 100 years, shareholders of innovative companies that serve their customers have made fortunes.

It’s been the surest way to get rich in America for more than 100 years. It will be that way for at least 100 more. That’s why staying bullish on human progress and innovation is at the foundation of what we do at InvestorPlace.

It’s also why, when our subscribers write in to ask if we have “bear market survival” plans, we send them this essay.

Our “bear market survival” plan consists of reviewing the facts above, thinking long-term, and looking to buy high-quality stocks at discount prices.

Our “bear market survival” plan does not consist of selling stocks in a panic.

I believe that when an investor can “deprogram” themselves from obsessing over “the market” and interest rates – and instead focus on the things above – the things that history has shown really matter – that investor ascends to a higher level of understanding when it comes to money and investing.

It’s one of the most important milestones on the journey to mastering money.

The Next Time You’re Tempted to Panic About a Bear Market, Look at These Eight Charts

Since 1928, there have been 26 bear markets in the benchmark S&P 500 stock index. After each and every one of them, stocks went on to reach all-time highs. The track record here is perfect.

Recent history has eight outstanding examples of why a smart “bear market strategy” consists of keeping the facts in mind, thinking long term, and not getting scared out of stocks.

We like to think these eight charts are an antidote to a harmful financial disease we call “Short-Term-itis.”

For example, during the famed 1987 “Black Monday” crash, the stock market dropped 33.5% in a single day. It caused a short-term global financial panic.

However, less than two years later, the stock market reached an all-time high.

Then you have the big stock market decline of 1990, which was created by worries over a U.S. recession and the Gulf War. Stocks fell 19.9% during this decline. However, stock recovered and hit a new all-time high less than a year later.

Then you have the big 1998 market decline. Stocks fell 19.3% over the span of a few months. Stocks quickly recovered and reached a new all-time high by early 1999.

Then you have the 2000-2002 bear market. This crash came after the dot.com reached its frenzied peak in March 2000. Although this was one of the worst market downturns in U.S. history, stocks went on to recover and reach new all-time highs in 2007.

Next you have the stock bear market that accompanied the Great Financial Crisis of 2008. Stocks fell an incredible 56% during the decline. However, stocks went on to recover and entered a historic bull market that lasted a decade. Fortunes were made during the recovery and the market reached a new all-time high in 2013.

In the midst of the decade-long recovery that followed the 2008 crash, the market saw a decline of about 19% in late 2011. Stocks recovered and reached a new all-time high by early 2012.

In 2018, the market suffered a gut-wrenching decline of 19%. But by the summer of the following year, stocks had recovered and reached another new all-time high.

Then there is the COVID-19 related stock market drop and recovery of 2020. When the world realized COVID-19 was a serious worldwide problem, the market fell 53% in less than two months. However, government stimulus helped the market recover and stocks reached a new all-time high by the end of the year.

Summing Up Famous Bear Markets

You’ve just gone on a tour of the biggest financial disasters of the past 60 years.

You’ve reviewed the most famous, most horrible bear markets and stock crashes in history… like the Black Monday crash of 1987… the dot-com crash of 2000… and the Great Financial Crisis of 2008.

You’ve also seen the track record here is perfect. Each period of rough times was followed by all-time highs.

These recent recoveries highlight a very long trend…

Every major stock market correction, every crash, every bear market in American history has been followed by new all-time highs.

That’s why we state once again… FOR EMPHASIS…

During stock market corrections, focus on what really matters: progress, transformational industry trends, creating value for others, and innovation.

Remember that despite all the negative developments of the past 100 years, shareholders of innovative companies that serve their customers have made fortunes.

Remember that it pays to bet on America.

Remember that a wise “bear market survival” plan consists of reviewing the facts above, thinking long-term, and staying long stocks.

Regards,

Brian Hunt

Written by the Market Insights Team

The sting of market ‘detox’

Kevin Ford –FX & Macro Strategist

The withdrawal symptoms from the “detox” period that Treasury Secretary Scott Bessent predicted for the economy and markets are proving to be jittery and turbulent, particularly for U.S. equity markets. Over the past week, heightened risk aversion has driven a strong bid for safe-haven assets as sentiment remains skewed toward negative news. In the FX space, currencies like the Japanese Yen and Swiss Franc have appreciated against the greenback, which continues to face negative sentiment.

Spring-forward and markets woke up on the wrong side of bed yesterday following a significant sell-off in U.S. equities. Concerns about the economic impact of tariffs and federal government spending cuts persist. The only developments that might stabilize markets are a reversal of tariff policies or swift approval of tax and deregulation measures. However, the former appears highly unlikely, and with less than a week remaining to avert a U.S. government shutdown, uncertainty surrounds the timeline for approving President Trump’s budget.

Revisiting the ongoing tariff story, here’s a quick recap of last week’s developments:

– Tuesday: The U.S. imposed a 25% tariff on Mexico-Canada trade.

– Thursday: Trump announced a delay for all CUSMA/USMCA-compliant trade items until April 2^nd. The positive news for Canadian exporters, is that over 40% of trade already meets compliance standards, with the majority of the remaining items likely to follow soon.

– Friday: President Trump signaled the possibility of new tariffs on Canadian dairy and lumber imports, scheduled to take effect on April 2^nd. Adding to the tension, China announced steep import levies on Canadian agricultural goods, including a 100% tariff on rapeseed oil, oil cakes, and peas, alongside a 25% duty on aquatic products and pork, effective March 20th.

Currently, a 10% tariff applies to Canadian energy products not covered by USMCA preferences, while aluminum and steel tariffs of 25% are set to begin tomorrow. By April 2^nd, clarity is expected on whether the 25% Mexico-Canada tariff will be rescinded or if sector-specific targeting, including dairy and lumber, will proceed alongside other reciprocal tariffs.

The Bank of Canada (BoC) is set to meet tomorrow and will likely address these escalating tariff tensions. A potential rate cut to the midpoint of their neutral range is on the table, with the possibility of a more aggressive easing cycle if broad tariffs persist. For investors, it is important to recognize that a definitive resolution to the regional trade dispute may not materialize until CUSMA/USMCA is renegotiated. Even in the absence of sustained tariffs, a clear resolution appears unlikely in the near term.

Volatility jumps on economic jitters

George Vessey – Lead FX & Macro Strategist

US stocks are heading toward their worst start to a presidential term since 2009, weighed down by recession fears and related uncertainty around tariffs. The Nasdaq 100 sank up to 4% on Monday, its worst day since 2022, while the S&P 500 extended its slide from a record to 8% and closed below its 200-day moving average for the first time since November 2023. Benchmark Treasury yields plunged as bets on supportive Federal Reserve (Fed) rate cuts rose, whilst the US dollar index steadied after suffering its worst week in two years.

US President Donald Trump’s shifting stance on tariffs has been stoking anxiety across financial markets for some time. But more recently, it’s raising concerns that policy uncertainty could tip the US economy into a recession. Indeed, Trump refused to rule out the possibility of a recession in an interview over the weekend, dismissing business concerns over lack of clarity on his tariff plans. This intensified speculation that short term economic pain will be tolerated by his administration in pursuit of longer term goals. Amidst the uncertainty around trade policy, sticky inflation and the unknown pace of the Fed’s interest-rate easing cycle, investors should anticipate continued volatility. We’ve already seen the VIX index, a gauge of expected volatility in the S&P 500 jump to its highest level since December. Implied volatility in the currency space has risen, but remains far from the 2022 and 2020 peaks.

The fundamentals of the Trump plan of deregulation and tax cuts were supposed to be dollar positive, but the execution of his plan with tariffs has soured the market mood and looks like it’s now dollar negative. In the very short term, a consolidation phase or slight correction higher looks feasible for the dollar after last week’s turbulence but we think we’ve already seen peak dollar strength for 2025. US JOLTS job openings data today followed by inflation data on Wednesday will be closely monitored on the data docket.

A watershed moment for the euro

George Vessey – Lead FX & Macro Strategist

After its best week since March 2009, EUR/USD’s momentum looks to be waning given the pair now sits in the overbought zone on the daily chart. Still, a high of $1.0875 today is almost five cents greater than where it was trading this time last week. We may be in for a short period of consolidation before another leg higher, but a few bullish factors remain in focus.

As we’ve reported, the EU plans to adjust fiscal rules to ramp up spending and that has sent yields soaring across Europe but has also fuelled optimism about a boost to the region’s economy. A report that Germany’s Green Party is ready to negotiate and see chances for an agreement over the defence spending by the end of this week is boosting this narrative. The theme may get some fresh impetus from potential US-Ukraine negotiations on Wednesday and further details about provisions by EU states for increased defence spending, including in support of Ukraine. However, there is a hint of overexuberance in the short term because of the slow transmission from an expansionary fiscal policy into growth and ECB’s reaction function. Plus, let’s not forget that a trade war might still be heading Europe’s way. Hence, further gains for the common currency are also going to rely on a continuation of the US slowdown story. One thing seems certain though, the narrative of independent US and European stories stands to lift FX volatility.

In the absence of top-tier economic data from Europe today, focus will also be on ECB speakers. After last Thursday’s interest rate cut, traders are now only fully pricing in one further quarter-point reduction in 2025, which would take the deposit rate to 2.25%. About a week ago they had fully priced in the rate moving to 2% by December.

Sterling testing key support versus euro

George Vessey – Lead FX & Macro Strategist

The pound is testing its supportive 50-week moving average against the euro this morning. A close below could open up the door to €1.1740 as German and UK yields narrow and prospects for Eurozone growth look stronger in the wake of the bazooka spending plans from Europe. Meanwhile, GBP/USD upside traction has stalled, with the pair perched near the $1.29 handle after last week’s massive 2.7% climb.

With US recession risks rising, the risk sensitive pound lost the most ground against the Japanese yen yesterday as heightened risk aversion drove demand for safe-haven currencies. Although the UK looks better positioned to avert tariffs from the US due to its goods trade deficit, the pound is likely to remain vulnerable via the risk sentiment channel due to its worsening net international investment position and the fact it has a persistent current account deficit. This means sterling is reliant on foreign capital inflows, which often dry up when the market mood turns sour.

Meanwhile, on the macro front, data early this morning showed retail sales in the UK rose by 0.9% y/y in February, a sharp slowdown from January’s 2.5% gain and well below the expected 2.4% increase. Consumers continued to cut back on purchases amid the ongoing cost-of-living crisis. UK GDP figures later this week will be in spotlight for pound traders.

Equities, oil and yields tumbling

Table: 7-day currency trends and trading ranges

Key global risk events

Calendar: March 10-14

All times are in ET

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*The FX rates published are provided by Convera’s Market Insights team for research purposes only. The rates have a unique source and may not align to any live exchange rates quoted on other sites. They are not an indication of actual buy/sell rates, or a financial offer.

Americans can’t shake their inflation fears.

Two-thirds of U.S. adults say inflation is their biggest financial concern, according to a survey released Monday by Northwestern Mutual, and more than half believe inflation will increase this year.

More than half of respondents to the survey said inflation is rising faster than their household income: Over 80% said they have experienced higher grocery bills in the last three months; nearly seven in 10 experienced elevated utility costs; and 60% have had sticker shock at the gas pump. The survey, conducted in mid-January, was taken by more than 4,600 American adults.

Another fresh reading, from the New York Fed, indicates that Americans in February anticipated inflation getting worse over the next 12 months.

“Economists often talk about how inflation is ‘sticky,’ meaning it takes time to reverse a broad economic cycle,” said Northwestern Mutual Chief Field Officer John Roberts. “Our study findings show that inflation is sticky at the individual level too—it remains top of mind for people, and they get reminded of it often in their daily lives.”

The next big read on inflation, the Consumer Price Index report for February, is scheduled for release Wednesday morning. (Here’s what to expect.) The National Retail Federation’s monthly tracker of retail sales indicated a slight retreat in February from January.