Category Penny Stocks

Well, it’s official, folks. Liberation Day is here, and we now know the details of President Donald Trump’s tariffs.

I just recorded a short video to answer the questions on all our minds:

“How will the tariffs impact the market, and how should I position myself accordingly?”

You can see my answers by clicking here or on the screenshot below. You might be surprised to learn what I have to say.

Here’s what we know…

Trump announced a 10% baseline tariff on all imports starting April 5. Other countries that Trump considers “bad actors” will pay a reciprocal tariff.

These higher tariffs will be half of what the White House estimates other countries are charging us, either through outright tariffs, trade barriers, or currency manipulation.

Duties include 24% on Japan and 20% on the European Union, and those are effective April 9. There’s also a new 34% tariff on Chinese goods on top of already announced 20% duties.

Now, this is all fascinating to watch, and the market is clearly up in arms over this right now. But I want to be very clear, folks…

What we are witnessing is a profound transformation of the way we do business. The goals of the tariffs have always been the same: level the playing field on trade, increase tax revenue, and ultimately create a massive wave of onshoring to the United States.

We’re already seeing that play out, as there has been roughly $6 trillion in onshoring already announced – and we could soon approach $10 trillion.

So, once the dust settles and the market realizes the effects of this mega-wave of onshoring, the U.S. economy could be primed to boom.

That’s why I just sat down with Luis Hernandez, Editor-in-Chief of InvestorPlace, to explain what investors can expect from the tariffs – and how they can profit.

Just click here or the screenshot to watch this short video.

Now, the bottom line is I don’t want you to let the tariff headlines throw you off track.

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, these tariff changes are just one part of a massive convergence that’s taking place between Trump’s policies and the AI Revolution.

As this Trump/AI Convergence happens, I expect it to unlock powerful gains for investors.

That’s where my Accelerated Profits service comes in. My Buy List is full of stocks that hold up when the market gets choppy – and sprint ahead when things turn around.

That’s why my Accelerated Profits subscribers had the chance, over the past year or so, for gains such as…

• 90.25% from Celestica, Inc. (CLS)
• 95.13% from Builders FirstSource, Inc. (BLDR)
• 114.49% from Targa Resources Corp. (TRGP)
• 187.28% from YPF Sociedad Anonomia (YPF)
• 604% from Vista Oil & Gas (VIST)

In fact, my system has identified the companies best positioned to thrive in this new Trump/AI Convergence – stocks with superior fundamentals and persistent institutional buying pressure.

Click here to learn more now.

Sincerely,

Louis Navellier

Editor, Market 360

The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:

Celestica, Inc. (CLS) and Targa Resources Corp. (TRGP)

Editor’s Note: Yesterday, I shared my approach to President Donald Trump’s sweeping tariff plan. While I’m sticking with my “Keep Calm and Carry On” strategy and staying focused on lowly valued, “unpopular” stocks, my InvestorPlace colleague Louis Navellier offers a different perspective worth considering.

You can hear Louis’s take in this insightful video interview with InvestorPlace Editor-in-Chief Luis Hernandez.

Though this market selloff is understandably causing anxiety, both Louis and I want to reassure you: Solid investment opportunities are still very much present. And I’ll be sharing some of my own in this space in the coming days and weeks.

Meanwhile, here’s Louis…

Well, it’s official, folks. Liberation Day is here, and we now know the details of President Donald Trump’s tariffs.

I just recorded a short video to answer the questions on all our minds:

“How will the tariffs impact the market, and how should I position myself accordingly?”

Here’s what we know…

Trump announced a 10% baseline tariff on all imports starting April 5. Other countries that Trump considers “bad actors” will pay a reciprocal tariff.

These higher tariffs will be half of what the White House estimates other countries are charging us, either through outright tariffs, trade barriers, or currency manipulation.

Duties include 24% on Japan and 20% on the European Union, and those are effective April 9. There’s also a new 34% tariff on Chinese goods on top of already announced 20% duties.

Now, this is all fascinating to watch, and the market is clearly up in arms over this right now. But I want to be very clear, folks…

What we are witnessing is a profound transformation of the way we do business. The goals of the tariffs have always been the same: level the playing field on trade, increase tax revenue, and ultimately create a massive wave of onshoring to the United States.

We’re already seeing that play out, as there has been roughly $6 trillion in onshoring already announced – and we could soon approach $10 trillion.

So, once the dust settles and the market realizes the effects of this mega-wave of onshoring, the U.S. economy could be primed to boom.

That’s why I just sat down with Luis Hernandez, Editor-in-Chief of InvestorPlace, to explain what investors can expect from the tariffs – and how they can profit.

Just press “play” below to watch this short video.

Now, the bottom line is I don’t want you to let the tariff headlines throw you off track.

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

You see, these tariff changes are just one part of a massive convergence that’s taking place between Trump’s policies and the AI Revolution.

As this Trump/AI Convergence happens, I expect it to unlock powerful gains for investors.

That’s where my Accelerated Profits service comes in. My Buy List is full of stocks that hold up when the market gets choppy – and sprint ahead when things turn around.

That’s why my Accelerated Profits subscribers had the chance, over the past year or so, for gains such as…

• 90.25% from Celestica, Inc. (CLS)
• 95.13% from Builders FirstSource, Inc. (BLDR)
• 114.49% from Targa Resources Corp. (TRGP)
• 187.28% from YPF Sociedad Anonomia (YPF)
• 604% from Vista Oil & Gas (VIST)

In fact, my system has identified the companies best positioned to thrive in this new Trump/AI Convergence – stocks with superior fundamentals and persistent institutional buying pressure.

Click here to learn more now.

Regards,

Louis Navellier

Editor, Market360

Louis hereby discloses that as of the date of this email, Louis, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:

Celestica, Inc. (CLS) and Targa Resources Corp. (TRGP)

Transcript

Luis Hernandez: Hi, I’m Luis Hernandez, Editor-in-Chief at InvestorPlace. Well, it’s the day after “Liberation Day” when President Donald Trump announced his plans for the introduction of a series of new tariffs. Here are the basics…

A 10% baseline tariff. These are across-the-board levies on all imports starting April 5. Other countries will pay a discounted reciprocal tariff. So higher rates for some nations that Trump considers bad actors. Duties include 24% on Japan and 20% on the EU in lieu of the universal 10% tariff, and those are effective April 9. A new 34% tariff on Chinese goods on top of already announced duties such as the 20% tariff Trump imposed over fentanyl. That means the base tariff rate on Chinese imports will be 54% before adding tariffs imposed during Biden’s presidency or Trump’s first term.

Canada and Mexico are excluded from the reciprocal tariff regime. Trump said he’s imposing 25% tariffs on all foreign-made autos as of midnight last night.

Today I’m here with investing legend Louis Navellier, to explain what it all means for investors today and what they can expect to happen over the coming weeks. Whether you’re a free trade believer or think trade tariffs are a great idea, you need to be prepared for whatever happens next. And as we always like to say, if you don’t prepare, you’ll be left behind.

Louis, thanks for taking the time.

Louis Navellier: Well, I think the first obvious comment I have is that Howard Lutnick is in charge. He’s the commerce secretary, and he’s the one that’s been pushing for the tariffs to eventually eliminate the income tax. Now, that’s a tall task and I don’t think he’ll get there, but he may be able to reduce the income tax more with these tariffs.

Just to be academic, and I don’t want to get anybody upset, in America we do have huge underground economies. You have 20% of Californians, for example, don’t even have bank accounts. This is part of the crypto economy and other things that are out there. So if you have an underground economy that you can’t tax, and those underground economies are throughout America, you either have to put on a national sales tax or a value-added (VAT) tax. Excuse me, the tariffs. It’s either a VAT or the tariffs.

So they’ve chosen to go the tariff route and it is going to hurt some consumers, but the bottom line is you’re going to not pay as much income tax as longer term.

The other thing is the dollar opened up weak today because the British pound surging and so is the euro. That’s going to reverse. The dollar’s going to get its mojo back, be super strong and the strength of the dollar might entirely offset the 10% tariffs, the baseline tariffs.

As far as the reciprocal tariffs on everybody else that are much higher, Trump pointed out, they’re half of what they do to us. And it’s going to be fascinating to see how all this unfolds. This is really hurting Southeast Asia a lot, and we had huge tariffs with Vietnam, Thailand, I can go on and on. And so somebody like Nike Inc. (NKE) that makes shoes in Vietnam, they’re going to be impacted immensely.

But the tariffs on the chips, semiconductor chips, I’m not too worried about because obviously we have that big Taiwan Semiconductor Manufacturing Company Limited (TSM) plant in Gilbert, Arizona that they’re investing literally a hundred plus billion additionally. So I think that’ll just cause more onshoring.

Of course, the whole objective of this is to onshore everything. And Trump already announced that there’s over $6 trillion onshoring that he knows of. But if we get the German auto plants to beef up their facilities in Alabama, South Carolina, Tennessee, we could be approaching almost $10 trillion in onshoring, which is mind-boggling.

I am also fascinated that there’s a 10% tariff on Britain where we run a trade surplus. We also run a trade surplus with Australia, so there’s a 10% tariff on them, but there’s a 20% tariff on the European Union (EU). There’s no doubt Trump’s going to war with the EU.

And if I’m Chancellor Merz in Germany, I think he has to surrender. I know he wants to have a strong response with French President Macron on Monday, but I think they need to surrender. They can’t compete. Their electricity is four times higher than ours in America. Trump has already said, I’ll give you the visas for your workers. They already have plants in America. Oh, and by the way, if you stay in Germany, guess what? You can only make electric vehicles by 2035 and you’re not making any money on them. So why don’t you just pick up your entire manufacturing business, which you have been losing because of high electricity prices, move the whole thing to America and you can go back to your old business model of not only EVs but hybrids and ICE vehicles, internal combustion engine vehicles.

So I think this is fascinating. I also think the death of the EU is coming. The U.S. has sent a very strong signal, not to ignore the populace. What happened in France with Marine Le Pen is shocking. The party that wanted to turn on Germany’s nuclear plants to save their manufacturing base, they got 21% of the vote. The second-biggest party in Germany has been totally ignored. So this is J.D. Vance’s assertion.

These negotiations are not going to be nice. Scott Bessent is a straight guy. He’s made it very clear that if they try to retaliate in any manner, it’s not going to end well. So we have all the leverage, but in the end, the dollar will be very strong.

The final comment I have, this is going to accelerate the collapse of interest rates that I keep predicting. You already have Treasury yields down sharply, but the European Central Bank is going to have to be slashing rates. And as global rates collapse, our rates will come down. We’ll be the last to cut, but that’s why I’m still expecting four rate cuts this year.

And China, I want to remind everybody, rates are lower than Japan. China will be at or near zero for the next two decades. And this is going to be just fascinating to watch.

Luis Hernandez: You hit on a couple of points there that I just want to follow up on.

So you mentioned auto manufacturing may be coming over to the United States. Is that the only one or are there other kind of manufacturing sectors that could potentially move to the United States?

Louis Navellier: Well, the auto tariffs are 25%. And what’s confusing to everybody is this USMCA (which is the U.S.-Mexican-Canadian trade) agreement that was modified under Trump 1.0 in its first term, it expires in 2026. And the way I understand it, if your Dodge pickup or your Chevy Equinox, which is made in Mexico, comes over and has 40% non-U.S. content, you’ll be paying a 25% tariff on that non-U.S. content.

General Motors Co. (GM) has outsourced immensely, so they’re really hurt by this. Stellantis NV (STLA) even more so. Obviously, the most domestic auto manufacturer is Tesla Inc. (TSLA). Tesla will benefit from this; they’re about 87% domestic.

Ford Motor Co.’s (F) is about 80%, but Ford does use a lot of aluminum, and that aluminum comes predominantly from Canada because they have the cheap hydroelectric you need to make aluminum, aluminum is very energy intensive. And even the engines on the F-150 are made in Canada.

So we’ll have to see if the shifts. Canada and Mexico are already in recessions and they are in dire shape. And I think the country they’re retaliating the most against is Mexico because their deficit used to be $40 billion and it went to $178 billion because China was doing sub-assembly in Mexico trying to sneak their goods across the border under USMCA and North American Free Trade Agreement (NAFTA) rules.

That’s going to be the big fight, and I’m sure they’re just aghast right now, not only China but also Mexico and Canada.

Luis Hernandez: You also mentioned your prediction that we’re going to see at least four rate cuts this year from the Federal Reserve. What will that do to the market? What do you think the effect is going to be on the stock market when they have to do that?

Louis Navellier: Oh, it’ll cause us to explode. It’s very bullish. The main thing the U.S. has going for it that Europe and Asia don’t have is we have demographic growth. We have household formation. In America, we’re still pro-family, in the South, the Mountain West. Also in America, we assimilate our immigrants no matter how they got here. If you look around the rest of the world, and I’ll pick on Europe for example, they’re losing households. They’re giving away free homes in Sicily, Greece (I think you got to pay a dollar and agree to maintain them or pay a euro and agree to maintain them.)

They have immigration, but they’re not assimilating their immigrants. Britain used to, Germany used to, but they’ve been overrun. And France, of course, has never assimilated their immigrants.

So we just have a better model in America than everybody else. We’re younger, we’re more dynamic. Our 50 states compete with each other. So no matter who we elect, we’re going to win. We’re also food and energy-independent, which a lot of other countries can’t say.

But Asia’s pretty old. The highest birth rate in Asia is in Japan of all places. You would think it would be in Indonesia or Malaysia or Thailand or Vietnam, but it’s not. It’s in Japan.

So something interesting is going on around the world and the only countries that are expanding are the U.S., India and Brazil. And Brazil is about to stop expanding. So it’ll be the U.S. and India leading the way. But if you didn’t notice, Trump really slammed India with a lot of big tariffs.

Luis Hernandez: So let me ask you about the AI megatrend. That is what has been pushing the market for the last couple of years, of course. So is there an intersection here between what’s going on with tariffs and the AI megatrend, the Magnificent 7 and what that’s going to look like in the near term?

Louis Navellier: Well, Europe is going to try to punish America for these tariffs and they’re going to zero in on the tech companies.

If we just go back and look at what Europe’s doing, they obviously fined Apple Inc. (AAPL), they’ve been openly hostile to all U.S. tech companies. They want this thing called open-source software. And if you go back to the airplane crash on the Microsoft Corp. (MSFT) Azure Cloud, Microsoft didn’t blame CrowdStrike Holdings Inc. (CRWD) for that crash because there was an upgrade that crashed. Microsoft blamed Europe for the open-source software.

So Lina Khan, our former Federal Trade Commission (FTC) chairman, that’s all she wanted was open-source software. Keir Starmer, when he met with President Trump, is trying to get Apple to open up the iCloud so they can read everything in there and find if anybody’s bashing the Labour Party. Because if you do criticize the Labour Party, you can be imprisoned in Britain. They’re pursuing their opponents.

So all the tech companies have had a run to President Trump for protection. So Apple is getting protection from President Trump, and of course, President Trump got him to do half of $500 billion in investments. You can see the flip that Facebook – Meta Platforms Inc. (META) – did by embracing Trump. Google, of course, has a Justice Department ruling that they have to split up, so they need protection from Trump too, from the previous Justice Department. When they won that ruling against Google, it’s like the equivalent of a dog catching a car. What do they do now? You want to think about what you’re doing.

But Lina Khan was pushing for everything to be open source. And of course, she was suing Amazon.com Inc. (AMZN).

These are legal monopolies, our Magnificent 7, our tech companies and they’re all seeking the protection of President Trump and against Europe. And that’s the epic battle we’re having, and I expect them and us to win because what’s the alternative? The alternative would be opening up their architecture, having constant crashes as the regulators got in and read everything we do and try to humiliate us and imprison us and all that kind of stuff. Whatever they do over there to their opponents.

I mean, Europe is going to break up. The most popular guy in Romania cannot run for president. The Brussels has just disallowed him. The gal that runs the French Parliament, Marie Le Pen, now cannot run for president. Giorgia Meloni in Italy wanted to deport some people that the European courts have said she can’t.

So it was one thing to have a monetary union or a trade union. So the EU makes sense from that point of view. But when they start to run your governments and tell you what to do, that’s another matter.

So trust me, I guarantee you can talk to all these German engineers at the auto companies. They don’t want to do what the EU is telling them to do.

The other thing that’s so fascinating about what’s going on is that there’s been a big pushback against all the green movement. Obviously, that’s why they’re burning Teslas. And that makes no sense. But we’re learning, at least in America, we learned that the green movement was a front to enrich people. So I’m originally from California, from Berkeley, and I’ve been indoctrinated in all this stuff and I’m not anti-green energy. It works great in sunny places like Southern California or Arizona or Las Vegas. But what happens is they took this movement and they figured out how to enrich their friends. So we now know that Stacey Abrams got $2 billion for her non-governmental organization (NGO) to basically upgrade people’s appliances if they cut off natural gas. So for $2 billion, she upgraded the 89 homes and appliances.

I don’t know, I don’t think that’s cost-effective. It’s the same thing with the broadband for America. They spent a fortune on that never got built. You can use Starlink now, you don’t need it.

What’s happening is the U.S. is going to be more productive. We’re purging government now, obviously Elon’s doing that, and AI is going to make us super productive. It’s going to be driving all our cars. GM already announced the alliance with NVIDIA Corporation (NVDA) at NVIDIA’s Summit, and who else is aligned with NVIDIA is Toyota, BYD Company (BYDDY), Mercedes, Volvo, I can go on and on.

And then we have the Tesla autonomous system, the NVIDIA autonomous system. We’ve got dueling robotaxis. You’ll be having the driverless cars in Washington D.C. soon, so good luck with that, the Waymos. Basically, Google versus Tesla, who has the best system, because they’re different. One’s LiDAR with the NVIDIA stuff and one’s based on the mapping that Tesla does.

And every decision in the boardroom, well, there’ll be an AI opinion there. And then AI will be on the factory floors.

With all the manufacturing onshoring, it’ll be fascinating how much of it can be done with robots. There’s a good video out there of all the robots running around with goods on their backs, dumping them into holes, and then when their batteries run out, they all go back to their little charging stations. But it’s fun to watch them run around and not hit each other because of the sensors.

The U.S. is going to lead the world in productivity.

And by the way, Japan’s been pretty good in productivity too. Japan’s been one of the few societies that can age and still get more productive.

So I think us and Japan will lead the way. And I think AI is the key to profitability and prosperity, to be honest with you.

Luis Hernandez: Okay. So you’ve said before that over the short term the market acts like a manic herd, but now that we’ve had the Liberation Day announcements, and if these tariffs are more of a ceiling and not a floor, do you think the market’s going to act a little bit more rationally going forward from here?

Louis Navellier: Yeah, I do. First of all, you have to understand the reason the market’s gapping down is Asia gap down.

So there was a reaction. The bigger the board, the lower the IQ, the bigger the crowd, the lower the IQ. What happens is the market is a manic crowd. So all we’re getting is just Asia’s shock and Europe’s shock. But that doesn’t affect us. I’m recommending 80 plus stocks, I don’t have one analyst cut, not one. And we’ve already seen the earnings work. Argan Inc. (AGX) reported last week gapped up 20%. We saw one of our other stocks get bought out, Mr. Cooper Group Inc. (COOP).

We’re still going to lead the world.

The only thing that’s so confusing is we are going to have negative Gross Domestic Product (GDP) growth because they dumped… Our gold reserves went up 43% in January, 25% in February. They dumped goods in America in January and February (I don’t have the March numbers.) And so the trade deficit got so out of whack that it’s going to have negative GDP growth in the first quarter. But we just don’t have the signs of that. We don’t have the labor signs or anything. And I think we’ll be fine.

My other comment is that we do recommend five gold stocks. So it’s important that people own those because when we get the really bad days, they definitely zig when other things zag.

Luis Hernandez: Yep. So I know you well enough to know that you’re not going to be changing your style here after 40 years of success. And you mentioned that you’re not having a lot of analyst revisions downward. Can you give us a couple of your favorite stocks right now just for folks to take away?

Louis Navellier: Well, lock and load on NVIDIA. I mean that’s a stock that’ll change your life and it will dominate through the end of the decade. They have two more reiterations of the Blackwell chip, they already got fancy names for them. And then after the end of the decade, they can’t make their chips much faster because they’re approaching the atomic level of the transistors. You can’t split items to make your chips faster. So then they have to switch to quantum computing, which of course they had that contest. And we’ve done some research reports on the winners of that cloud computing challenge, excuse me, the quantum computing challenge.

So NVIDIA is definitely a stock you should hold through the end of the decade. It’ll change your life. I love Jensen. He’s one of the few founders that can run a company. So that’s the first one.

The second one is I really like Eli Lilly And Co. (LLY). Lilly is onshoring. The weight loss drug phenomenon is real and they are beating Novo Nordisk A/S (NVO) in the weight loss medication. Novo Nordisk dominates diabetes medication. We sold Novo Nordisk quite a few months ago, mainly because Lilly’s beating them. So if you want to play that trend, Lilly’s a good buy here near term.

But our small-cap stocks are bunnies. They sit, they hop, they’re very erratic. There’s a lot of great small-cap buys like Powell Industries Inc. (POWL). I’ve lost track of how many great ones there are, but they’ll all pop around their earnings. I’m very comfortable and confident of that.

Luis Hernandez: Terrific, Louis. Thanks so much for your insights. It’s going to be a fascinating time for sure.

Louis Navellier: Oh, it’s going to be very exciting, but it can only get better.

And by the way, they got Scott Bessent out and about. They got Howard Lutnick out and about. There’s a big PR push underway right now, so let’s just let that push.

And Europe is totally screwed. So they think they’re going to retaliate on Monday, they’re not. Whatever they do, they just hurt themselves and it’s going to be fascinating to watch, but we have all the leverage. I don’t think Trump enjoys tormenting people, but I think he does like to have leverage in negotiations, and there’s no doubt he’s asserting that. And there’s no doubt that it ends with how much are you going to onshore. And the more they onshore, the more we win.

So that’s what’s happening.

Luis Hernandez: Okay. Thanks, Louis. I appreciate it.

Louis Navellier: Thank you.

Luis Hernandez: Folks, below this video, you should see a link to Louis’s Accelerated Profits product. This is Louis’s fastest-moving service focused on finding stocks that are making short-term moves to the upside so you don’t have to endure the constant market swings.

Besides frequent new buys, usually at least two every month, every Tuesday, Louis identifies his top three stocks to buy right now. So when you join, you’ll see Louis’s latest favorite picks today and then get them every Tuesday going forward.

Thanks again for your attention.

Hello, Reader.

In 1939, the British government wanted to boost public morale before the outbreak of World War II. So, they created a series of posters that featured simple motivational sayings.

The posters were never officially released, but one in the series gained widespread popularity after it was rediscovered in an English bookshop nearly 60 years later.

And there’s a good chance you’ve seen it…

This bright red poster quickly became a global phenomenon. There is even an official “Keep Calm and Carry On” web store, which sells T-shirts, mugs, and phone cases featuring the now iconic phrase.

The message is, indeed, simple, yet effective: We must stay composed in the face of adversity, continuing on as best we can.

And it’s a sentiment I’d like to share today, especially ahead of President Donald Trump’s “Liberation Day” announcements.

Trump is expected to announce a sweeping tariff plan after markets close today. So far, the plan has remained largely a mystery. Even this morning, the administration seemed unsure about the direction it is going to take.

Of course, it can be hard to “Keep Calm and Carry On” against so many unknowns.

But here’s what I do know: The best thing to do to “tariff-proof” your portfolio is to stay away from companies close to the trade war’s ground zero.

Here’s where to look instead…

Keeping Calm…

I recommend sticking with lowly valued, and seemingly “unpopular,” stocks.

Pharmaceuticals would be one such example.

Take Bristol-Myers Squibb Co. (BMY), one of the largest biopharmaceutical companies in the world… and one of healthcare industry’s greatest comeback stories.

As we wrote just yesterday in a weekly update for my paid Fry’s Investment Report service…

Shares of the firm had previously sold off on fears of a three-step patent cliff from cancer drugs Revlimid and Opdivo and heart drug Eliquis. A technical write-off of its 2024 Karuna acquisition only added to the selloff. 

But these cheap prices created an incredible buying opportunity that continues through today. BMY still trades in single-digit price-to-earnings ratios, despite now having one of the best oncology pipelines in the business. It also has growing potential in disorders like schizophrenia and Alzheimer’s disease thanks to its acquisition of Cobenfy last year. In fact, BMY has actually risen this week.

Indeed, many of the pharmaceutical names in my Fry’s Investment Report portfolio are up this week, despite the uncertainty.

Weeks before the threat of Trump’s tariffs arrived, I predicted that the lowly valued pharmaceutical sector would outperform the richly valued S&P 500 index. As I explained at the start of the year…

The pharmaceutical industry is becoming a hotbed of AI-enabled innovation and discovery. Therefore, as AI extends its tentacles into every facet of the drug discovery process, the industry’s profitability could grow considerably. Yet, The NYSE Arca Pharmaceutical Index is trading for just 14 estimated 2025 earnings, or 40% less than the tech-heavy Nasdaq-100 index. I expect that valuation gap to narrow considerably during 2025, as pharmaceutical stocks outperform most tech stocks.

So far, so good on that forecast.

In an otherwise bleak stock market environment, the pharma sector has been outperforming the Nasdaq-100 Index by a wide margin. The NYSE Arca Pharmaceutical Index has advanced 7% year-to-date, compared to the Nasdaq-100’s 7% loss, another richly valued index.

The same can be said for the European markets…

… And Carrying On

Even though shares of European stocks are down this week, they also have been outperforming our own market in 2025, for the most part.

That’s because they carry relatively low valuations.

It’s also because European companies have no “beef” with other countries. So even if they are shut out from the U.S. market in Trump’s latest tariff plans, they are not shut out from South America, Canada, or Asia.

In fact, to the extent that the rest of the world retaliates against the U.S., European companies could become “swing” providers of many products to other countries.

So, before today’s Liberation Day announcements and after, I will continue to “Keep Calm and Carry On.”

And I’ll help my paid-up members do the same by focusing on lowly valued sectors and stocks.

I recommend that you do that same… and the best way to do is by joining us at Fry’s Investment Report.

Click here to learn how to become a member today.

Regards,

Eric Fry

P.S. You’re almost out of time to access what could be the most important financial research of 2025.

For the past few years, Louis Navellier, Luke Lango, and I have been warning about a massive economic divide we call the “Technochasm” – and our predictions have proven alarmingly accurate. Now, we’re sounding the alarm about an even more dramatic acceleration of this trend, driven by AI’s explosive growth.

We have just issued urgent buy alerts on six stocks that could surge in the coming weeks and months, as AI enters turns the Technochasm into an abyss. You can learn more about how this will all play out in the markets and the names of these six stocks by watching this time sensitive video.

Just please don’t delay… this video comes offline tonight at midnight ET.

Trump reveals his reciprocal tariff plan … do we need to worry about a recession? … your last chance to get Louis Navellier’s AI picks … a huge opportunity in natural gas

Coming into today, here’s where we stood with tariffs…

• Last week, President Trump signed an executive order putting a 25% tariff on all cars and light-duty trucks imported into the U.S.
• Trump had imposed a 20% tax on all Chinese imports.
• The administration had signaled it will add imports of beer and empty aluminum cans to its 25% tariffs on derivative aluminum products.

As we’re going to press, President Trump has just revealed the details of his master reciprocal tariff plan. We’re rushing to get today’s issue out, so here’s the quick recap of what we’ve learned.

First, Trump confirmed that the 25% tariff on non-U.S.-made cars will begin tomorrow.

As to new tariffs, Trump said that his administration will be “charging a discounted reciprocal tariff.”

Specifically, they’ve tallied the combined rate of all foreign tariffs on U.S. goods plus indirect financial impositions (currency manipulation and trade barriers). Based on that total amount, the U.S. will impose a reciprocal tariff of half that amount. Trump referred to this as “kind” reciprocal.

Trump also clarified that the U.S. will impose a minimum baseline tariff of 10% on all countries.

Here’s the “Liberation Day Reciprocal Tariffs” list from The White House:

Trump made his overall goal clear after delineating the various country-specific tariffs, saying:

If you want your tariff rate to be 0%, build your product here in America.

So, where do we go from here?

Here’s what our hypergrowth expert Luke Lango wrote earlier this week about the likely path. From his Innovation Investor Daily Notes:

We think that, despite all the intense and hostile rhetoric out there right now, everyone will rush to the negotiating table to quickly strike new trade deals in April.

We expect the tough talk to turn into a soft walk. Deals get done when the stakes are this high — and we fully expect the U.S., Canada, the EU, and others to come to the table and hammer out a flurry of new trade agreements in the next few weeks.

Consequently, we believe that most of these tariffs won’t last more than a few weeks and that by late April, most of this tariff drama will be in the rearview mirror. 

That means the trade war hysteria should cool down in the next few weeks.

And once that happens? This market should rip higher.

Let’s not forget — this selloff isn’t about what has happened. It’s about fear. Fear of what might happen. And if that worst-case scenario never shows up, the fear unwinds, and equities snap back hard.

There’s a lot to unpack from Trump’s announcement today. We’ll bring you the analysis and action steps from our analysts over the coming days.

I will note that stock futures are down big as I write with the Nasdaq off more than 2%.

Stay tuned.

To what extent do we need to worry about a recession?

On Monday, both Goldman Sachs and Moody’s Analytics raised their probabilities of a recession.

Goldman upped the odds from 20% to 35%. Moody’s went from 15% at the start of the year to 40%.

Meanwhile, if we look at the Atlanta Fed’s GDPNow tool, its latest estimate predicts a 3.7% economic contraction in Q1.

How seriously do we need to take this?

Let’s go to legendary investor, Louis Navellier, editor of Growth Investor:

The Atlanta Fed now expects the U.S. economy to contract in the first quarter – and that rattled Wall Street.

The primary reason why GDP growth is forecast to be negative in the first quarter is due to a big trade deficit, which is because of all the dumping of imported goods and an increase in gold inventory…

So, the trade deficit is now deducting a whopping 4% from first-quarter GDP growth. In other words, excluding the trade deficit, the U.S. economy is still growing.

I should also add that none of the economic tea leaves signal a recession.

Both Treasury Secretary Scott Bessent and Federal Reserve Chair Jerome Powell recently stated that the U.S. economy is “healthy.”

Louis also highlights some recent, positive economic reports.

For example, we just saw a surprising jump in existing home sales.

He also notes that the Trump administration is soliciting trillions in onshoring which, if successful, would boost GDP growth.

Put it all together and here’s Louis’ bottom line:

The U.S. is not at risk of falling into a recession.

But Louis is seeing opportunity in certain AI stocks that have imploded due to recession fears

Here’s Louis in yesterday’s Digest:

Remember, markets are manic. Wall Street has ignored a lot of great AI news lately.

[Despite AI earnings growth], investors have only focused on the negatives lately (mainly tariffs). The media only adds fuel to the fire in situations like this, because every setback in talks, and every ensuing pullback, is covered like it’s a full-blown crisis.

This has sent the prices of many world-class AI stocks into correction territory. As a result, we’re now facing a grossly oversold stock market where phenomenal companies like NVIDIA are trading at incredible discounts.

To Louis’ point, NVDA is down 27% from its January high.

And the Magnificent 7 stocks as a whole (a proxy for mega-tech AI leadership) have fallen into an official bear market.

It’s gotten so bad that bears have renamed the “Mag 7s” the “Lag 7s.”

But as we’ve been tracking here in the Digest, Louis, along with our global macro expert Eric Fry and our technology expert Luke Lango, have been urging investors to use this selloff as a chance to buy into tomorrow’s AI leaders.

This is even more important considering how AI is exploding our nation’s wealth gap.

Last week, Louis, Eric, and Luke provided a roadmap for the best way to invest in AI today in light of “The Technochasm”

This is their term to describe the widening wealth divide generated from cutting-edge technology and AI.

In their presentation, they detailed three critical steps investors must take now to stay on the right side of this growing tech divide, along with a basket of top-tier AI stocks.

Here’s Luke with what happened the last time our three analysts provided a Technochasm-themed basket of recommendations:

We called the Technochasm in 2020. So, believe us when we tell you that this is a chasm that companies and individuals either leap across or fall into. There is no middle ground.

Those who listened to us in 2020 banked ~1,350% from Freeport-McMoRan Inc. (FCX) in 11 months, ~1,000% from Nvidia (NVDA), and upward of 1,200% from Fulgent Genetics Inc. (FLGT) in under two years.

Peanuts, maybe, compared to what’s ahead.

For investors, this creates a once-in-a-generation opportunity.

If you missed last week’s free presentation, you can watch it right here. Please note that today is the last day it’ll be available.

Don’t miss this opportunity in natural gas

We’re tracking a disconnect brewing in the natural gas market that’s setting up a buying opportunity.

Gas prices are rising, but natural gas stocks are falling. In the background, demand is climbing as inventories drop.

Eventually, this should result in high-quality natural gas stocks shooting higher to reflect today’s bullish imbalance.

Eric, editor of Investment Report, highlighted this opportunity on Monday.

To establish context for his research, let’s begin by comparing the First Trust Natural Gas ETF (FCG) to the price of natural gas (a 4-week rolling average). FCG holds oil/gas heavyweights including ConocoPhillips, Hess, EQT Corporation, Occidental, and Diamondback Energy.

In the chart below, notice how FCG’s price (in green) has gone nowhere over the last two months while the price of natural gas (in black) has jumped around 35%.

From a basic “supply/demand” perspective, the rising price of natural gas makes sense – our nation’s supply levels are falling due to demand.

Here’s Eric:

U.S. natural gas in storage, relative to seasonal three-year average levels, has been dropping sharply for nearly a year.

The most recent reading showed storage levels 14% below average levels for this time of year.

Against this backdrop, U.S. natural gas demand is on track to surpass supply by a wide margin over the next two years, which should reduce stockpiles even further below three-year average levels.

Exports to foreign countries are behind much of the inventory drawdown

In February, the amount of gas flowing to U.S. export plants hit a record high. March’s export volumes are likely to set another record.

Better still, forecasts call for a continuation of the bullish imbalance between supply and demand after including U.S. exports. Here’s Eric with details:

Looking down the road, the U.S. Energy Information Administration (EIA) predicts LNG exports will grow by 2.1 Bcf/d in 2026, due to new export facilities…

Unlike domestic demand spikes that occur during exceptionally cold winters or hot summers, LNG export demand is relatively constant. Once in place, it remains in place and continues to consume domestic gas supplies…

As such, this source of demand puts continuous upward pressure on natural gas prices, especially if domestic gas production fails to keep pace.

The EIA is predicting that exact scenario. Although the agency expects domestic production to increase by 3.6% during the next two years, that figure is well below the 5.8% demand growth the agency predicts.

All the pieces are in place for higher stock prices for leading natural gas plays.

So, why aren’t prices already higher?

Part of the answer circles us back to the new segment we began last week…

Uncertainty has weighed on the oil patch

Last Friday, we began a new running segment: “Uncertainty Watch.”

Behind the segment is a lack of confidence in the direction of our economy that has begun to lead some consumers to hold off on purchases, and some corporate planners to hold off on major cap ex expenditures. Much of it stems from President Trump’s tariff plans, which have been unclear up until this afternoon.

This uncertainty has hit the oil sector. Last week, the Federal Reserve Bank of Dallas released the results of its quarterly survey of anonymous oil executives.

Here’s one such response highlighting the effect of uncertainty:

As a public company, our investors hate uncertainty. This has led to a marked increase in the implied cost of capital of our business, with public energy stocks down significantly more than oil prices over the last two months.

This uncertainty is being caused by the conflicting messages coming from the new administration.

Now, an astute reader might say, “Wait, oil and gas aren’t the same thing. I can understand oil stocks being down, but why are natural gas stocks lower, especially considering the supply/demand imbalance?”

Here’s Eric:

Tumbling crude oil prices probably deserve most of the blame…

For starters, falling crude prices cast a pall over the entire fossil fuel sector. In addition, most major natural gas producers also produce significant volumes of crude oil.

As a result, the shares of almost every North American natural gas producer have been sliding lower, no matter how little crude each company produces.

So, we’ll see how this all shakes out. But what we know for certain is that there’s a disconnect between natural gas prices and leading natural gas stocks. History shows this divergence will eventually close.

Eric recommended his favorite way to play this to his Investment Report subscribers. I won’t reveal it out of respect for subscribers, but here’s Eric referencing it:

At less than eight times earnings, its share price seems substantially undervalued, relative to both its peer group and to its “hidden” earnings potential from its holdings in the Delaware Basin chunk of the Permian.

But all that means is that this company currently offers a great buying opportunity.

Bottom line: U.S. natural gas is “Buy,” which means this natural gas play is a “Strong Buy.”

For more on joining Eric in Investment Report, click here.

We’ll keep you updated on all these stories here in the Digest.

Have a good evening,

Jeff Remsburg

Editor’s Note: After waking up on the wrong side of the bed this morning, the stock market is finding its footing this afternoon.

The fact is folks are anxiously awaiting the Trump administration’s big tariff announcements. Now, I suspect today’s announcement will be more favorable than some expect. We’ll know more following this afternoon’s event in the White House.

But rest assured, folks, I am following the developments closely and will weigh in with my thoughts in tomorrow’s Market 360. I’m also shooting a video interview with InvestorPlace Editor-in-Chief Luis Hernandez to explain what we learned about the tariffs and how investors can best position themselves to profit in this environment.

In the meantime, today is the last day to catch the replay of the special Technochasm broadcast I recently filmed with my InvestorPlace colleagues Eric Fry and Luke Lango. In it, we discussed the emerging, massive economic divide that’s being driven by AI’s explosive growth.

While most investors are focused on tariffs, we shouldn’t ignore the fact that the forces behind the Technochasm will be some of the most disruptive (but also profitable) opportunities of our lifetimes. And as you’ll learn from Luke today, one of those destructive forces is robotics.

Check out the replay of our event here. And now, over to Luke…

************

For years, artificial intelligence has been trapped behind screens, powering chatbots and crunching data. But the next big revolution in AI won’t just talk. It will walk, move, and workin ways very similar to us. 

I’m talking, of course, about humanoid robots. 

These creations are finally stepping out of science fiction and into reality, possibly poised to become the most disruptive AI advancement yet. From factory floors to elder care, these machines could easily reshape industries, redefine labor… maybe even challenge what it means to be human. 

But don’t just take my word for it. 

Everyone who’s anyone in the tech world is betting on humanoid robots being the next big AI breakthrough. Elon Musk, the world’s richest man, is certainly all-in on them. 

His firm Tesla Inc. (TSLA) has created a humanoid robot called Optimus, which is already being used inside Tesla factories to complete a variety of tasks. The company plans to ramp Optimus production to use them in its factories worldwide. It’s said that next year, it will start selling its robots to outside companies. And after that, it aims to offer them to consumers like you and me. We could soon have our own personal humanoid robot assistant in our homes, doing everything from unloading groceries and cleaning to safeguarding our house while we’re away. 

Clearly, Musk thinks humanoid robots are big business. In fact, on a recent Wall Street conference call, he said that he thinks “Optimus will be overwhelmingly the value of the company” with“the potential to be north of $10 trillion in revenue.” 

Those are bold statements. 

Yet, his bullishness on this breakthrough tech is not isolated. 

Big Tech’s Sweeping Bullishness

Meta (META) CEO Mark Zuckerberg is just as enthusiastic about a humanoid robot ‘takeover.’ 

He just created a new business unit within the company that is dedicated to the development of humanoid technology. Reportedly, Meta isn’t trying to create a full robot but, rather, an underlying software platform that robot-makers like Tesla can integrate into their bots. 

Meanwhile, Apple (AAPL) – the world’s largest company – has research teams within its own AI business that are working to develop robotics technologies. According to analysts, Apple is considering a range of robotics systems, from simple devices to complex humanoid machines, as part of a future smart home ecosystem where everything is automated. 

Alphabet (GOOGL) has also been investigating robotics technology and just invested in humanoid robotics startup Apptronik. 

NVIDIA Corporation (NVDA) just launched a new family of foundational AI models called Cosmos designed to help humanoid robots navigate the real world. 

OpenAI – maker of ChatGPT – is reportedly considering embarking on a humanoid endeavor.

And Microsoft (MSFT) has partnered with Sanctuary AI to build general-purpose humanoid robots. 

It seems the race is on!

And that means humanoid robots are coming soon – maybe to your very own home…

The Final Word on Humanoid Robots

Here’s the thing about Big Tech companies. They have enough money and talent that when they decide to do something, it is only a matter of time before they get it done. 

Nearly all have decided to tackle humanoid robots. They will get it done, likely within a few years. We could see ~$20,000 humanoid robots for sale on Tesla’s or Amazon’s websites by this decade’s end. These robots could be in millions of homes by the time 2030 rolls around. 

Clearly, the next stage of the AI Revolution has begun. (Check out our urgent broadcast on that here.)

That’s why I’m bringing your attention to Elon Musk and his AI robot, Optimus, today. 

I think it has the potential to profoundly change the world and go down in history as Musk’s greatest achievement. 

But this next stage of the AI Revolution is about much more than just robots.

This next phase is creating something my InvestorPlace colleagues, Eric Fry and Louis Navellier, and I call the Technochasm. It’s something we’ve been talking about for five years now.

See, there is a shift ripping through the economy – a split that will create a vast chasm between the haves and have-nots. The end result? The biggest wealth shift since the Industrial Revolution.

How you position yourself on the right side of the growing chasm is crucial. That’s where we come in.

Just last week, Eric, Louis, and I held an urgent briefing to share a groundbreaking AI announcement that could make or break investors moving forward.

Watch the replay to get the blueprint you need to follow if you want to make the most money possible in this next chapter of the Technochasm – before it goes offline at midnight ET tonight.

Regards,

Luke Lango

Senior Analyst, InvestorPlace

P.S. Louis here again. I know the market has been a bit sloppy today, folks. But hopefully, this afternoon’s tariff announcements will clear the way for the market to begin rallying.

Stay tuned for my thoughts tomorrow.

Editor’s note: “Humanoid Robots: Betting on the Next Big AI Breakthrough” was previously published in March 2025. It has since been updated to include the most relevant information available.

For years, artificial intelligence has been trapped behind screens, powering chatbots and crunching data. But the next big revolution in AI won’t just talk. It will walk, move, and work in ways very similar to us. 

I’m talking, of course, about humanoid robots. 

These creations are finally stepping out of science fiction and into reality, possibly poised to become the most disruptive AI advancement yet. From factory floors to elder care, these machines could easily reshape industries, redefine labor… maybe even challenge what it means to be human. 

But don’t just take my word for it. 

Everyone who’s anyone in the tech world is betting on humanoid robots being the next big AI breakthrough. Elon Musk, the world’s richest man, is certainly all-in on them. 

His firm Tesla (TSLA) has created a humanoid robot called Optimus, which is already being used inside Tesla factories to complete a variety of tasks. The company plans to ramp Optimus production to use them in its factories worldwide. It’s said that next year, it will start selling its robots to outside companies. And after that, it aims to offer them to consumers like you and me. We could soon have our own personal humanoid robot assistant in our homes, doing everything from unloading groceries and cleaning to safeguarding our house while we’re away. 

Clearly, Musk thinks humanoid robots are big business. In fact, on a recent Wall Street conference call, he said that he thinks “Optimus will be overwhelmingly the value of the company” with “the potential to be north of $10 trillion in revenue.” 

Those are bold statements. 

Yet, his bullishness on this breakthrough tech is not isolated. 

Big Tech’s Sweeping Bullishness

Meta (META) CEO Mark Zuckerberg is just as enthusiastic about a humanoid robot ‘takeover.’ 

He just created a new business unit within the company that is dedicated to the development of humanoid technology. Reportedly, Meta isn’t trying to create a full robot but, rather, an underlying software platform that robot-makers like Tesla can integrate into their bots. 

Meanwhile, Apple (AAPL) – the world’s largest company – has research teams within its own AI business that are working to develop robotics technologies. According to analysts, Apple is considering a range of robotics systems, from simple devices to complex humanoid machines, as part of a future smart home ecosystem where everything is automated. 

Alphabet (GOOGL) has also been investigating robotics technology and just invested in humanoid robotics startup Apptronik. 

Nvidia (NVDA) just launched a new family of foundational AI models called Cosmos designed to help humanoid robots navigate the real world. 

OpenAI – maker of ChatGPT – is reportedly considering embarking on a humanoid endeavor. And Microsoft (MSFT) has partnered with Sanctuary AI to build general-purpose humanoid robots. 

It seems the race is on!

And that means humanoid robots are coming soon – maybe to your very own home…

Trump’s goal with tariffs … is it working? … the stock market has turned “manic” … Goldman slashes its earnings forecast … your final day to get Louis’ AI picks

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.

So says legendary investor Louis Navellier.

Let’s begin today by separating fact from fiction regarding President Trump’s trade war and tomorrow’s much-anticipated “Liberation Day.”

If “destruction” isn’t driving Trump’s tariff plans, what is?

Back to Louis:

This is all about leverage, plain and simple…

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 onshoringto avoid tariffs altogether.

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

As one example of tariffs achieving their intended effect, Louis points toward Vietnam and the auto industry

Vietnam has the third-largest U.S. trade surplus after China and Mexico. And Louis notes that Trump tariffs are already achieving the desired outcome:

[Vietnam] 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…

This illustrates the “lowering their tariffs” part of the dual goal; let’s continue with the auto industry to highlight the “onshoring” aspect.

Back to Louis:

The EU is still hell-bent on net zero. So that’s why they want all-electric cars by 2035.

Well, if you’re sitting in Germany right now, you’re not making hardly any money, if any, on electric cars. All your money is made on cars with engines.

And Trump’s inviting you to come to America. He’s already said this, and he’ll give you the work visas for all your workers, and your electricity will be a quarter of the cost it is in Germany, and all these states will be throwing incentives at you to move, and you already have plants in America.

So, why don’t you just pick up and move? That’s what’s going on.

Of course, Trump’s tariff strategy isn’t limited to cars.

Louis notes that, altogether, $1.2 trillion in technology onshoring has already been announced. If pharmaceutical and auto companies follow suit, Louis believes that we could see several trillion dollars in new domestic investment.

Louis urges investors to resist the temptation to join the herd in panicking

We know what we’re supposed to do when market conditions turn nasty. We’ve heard the quotes like Warren Buffett’s, “be greedy only when others are fearful.”

But when you’re seeing your portfolio drop 5%… 8%… 14%… watching that translate into losses of thousands (or hundreds of thousands) of dollars, cool-headed logic is often overcome by emotion.

In moments like these, it’s helpful to take a page out of Louis’ playbook and shift our focus from portfolio values to earnings.

From Louis:

Remember, markets are manic. Wall Street has ignored a lot of great AI news lately.

On March 10, for instance, Taiwan Semiconductor Manufacturing Co. Ltd. (TSM) reported that February revenues had surged 43.1% to 260 billion Taiwan dollars.

This is a historically strong forward indicator for chip-designing firms like Arm Holdings plc (ARM) and NVIDIA Corporation (NVDA).

Now, forgetting ARM and NVDA for the moment, look at TSM.

Since that March 10^th announcement, TSM has fallen 2%. This is a continuation of its broader 25% pullback since late-January.

This could be a great long-term entry point.

As to Nvidia, regular Digest readers know that this is one of Louis’ favorite stocks.

He put his Growth Investor subscribers into it back in 2019. They’re sitting on open gains of 2,436% as I write Tuesday morning.

Despite its continued earnings/revenue strength over recent quarters, the stock has fallen 27% since the first week of January.

Remember, Louis has called Nvidia his “stock of the decade.” Might a 27% discount be something to consider?

Here’s Louis’ overall take:

[Despite AI earnings growth], investors have only focused on the negatives lately (mainly tariffs). The media only adds fuel to the fire in situations like this, because every setback in talks, and every ensuing pullback, is covered like it’s a full-blown crisis.

This has sent the prices of many world-class AI stocks into correction territory. As a result, we’re now facing a grossly oversold stock market where phenomenal companies like NVIDIA are trading at incredible discounts.

Stock markets are not rational calculating machines. Again, markets are manic.

“Manic market” or not, this does not mean that investors have a green light to go on an indiscriminate buying spree

I was on a call this morning with a handful of analysts from InvestorPlace and our corporate affiliate TradeSmith. The takeaway? This is a stock picker’s market.

While there are plenty of overhyped, overvalued stocks to avoid, some fantastic buying opportunities are available for investors who know where to look – and Louis is looking (and buying) today.

I’ll circle back to those details in a moment. But first, let’s look at why a broad “buy the dip” mentality is dangerous today.

In short, we’re at risk of bearish sentiment eventually broadening into bearish earnings.

In recent Digests, we’ve been highlighting the push and pull on a stock price that comes from two sources: earnings and sentiment.

In the short term, sentiment drives a stock’s price movement, but in the long term, earnings win the day.

Today, bearish sentiment has weighed on stock prices even though earnings forecasts are bullish.

So, if trade wars (and other market overhangs) affect sentiment only, then – eventually – today’s bearish sentiment will turn bullish, and stocks will roar higher as bullish earnings retake the spotlight.

Our hypergrowth/technology expert Luke Lango made this point in yesterday’s Digest:

If the trade war doesn’t heat up… and the economy doesn’t slow… then those earnings estimates will only keep pushing higher… and the current valuation discount will make no sense…

So, AI stocks should rebound strongly.

But if trade wars result not only in today’s bearish sentiment, but also in tomorrow’s weaker earnings, then Wall Street will have to recalculate stock prices across the board.

Not only would those calculations include today’s lower sentiment multiples (and likely, even lower ones), but they’ll also have to include new, lower earnings per share numbers.

That could be brutal for stocks.

To illustrate, over the weekend, Goldman Sachs released a research note updating their market projections. In a worst-case recession scenario, they see stocks falling ~50%.

This leaves us with a rough binary…

If we begin to see evidence that sentiment is turning bullish, that’s a buy signal for great stocks in this “stock picker’s” market.

But if we begin to see a strong case that earnings are weakening, that’s a “take caution” signal.

Well, circling back to Goldman, they just lowered their expectations for where the S&P will finish the year (now projecting a loss). And a big reason for this is earnings.

From Chief U.S. Equity Strategist David Kostin:

These estimates incorporate downward revisions to both earnings growth and valuations, reflecting a weaker base case economic growth backdrop, higher uncertainty, and higher recession risk.

Goldman lowered its 2025 price target for the S&P from 6,200 to 5,700.

Though that target is a little over 1% higher than the S&P’s price as I write, it’s about 4% lower than where we started the year.

Such a tepid broad market forecast amplifies the importance of investing only in fundamentally strong stocks. These companies tend to fall less in bearish markets and rebound faster/higher in bullish markets. Or, as Louis often puts it:

Fundamentally superior stocks bounce like fresh tennis balls.

And this brings us back to what Louis is investing in today, and what he recommends for investors:

With things still volatile and uncertain right now, how should you invest?

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

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

For an illustration of such stocks, let’s rewind to last week

As we’ve been profiling here in the Digest, Louis, along with our other experts, Eric Fry and Luke Lango held a roundtable discussion centered on AI.

They provided a roadmap for how to invest right now, highlighting a small portfolio of elite AI stocks that they believe will be tomorrow’s market leaders. “Fundamental strength” is a core attribute.

Here’s Louis with earnings data on their top AI plays:

Of the 11 AI Revolution Portfolio companies that reported earnings last month, nine beat expectations, and another met forecasts.

As a group, these 11 firms posted 18% revenue growth and 24% earnings growth, and they are set to increase profits by another 77% by 2026. 

In comparison, the S&P 500 grew earnings 7.1% in the first quarter, while revenue increased 4.2%.

These are phenomenal numbers and serve as a reminder that great investment themes will outlast any market wobble. 

If you missed last week’s presentation, you can catch a free replay right here. Please note, it’ll only be available through tomorrow.

Wrapping up…

All eyes are on “Liberation Day” tomorrow.

Fortunately, Louis (and Luke) believe that while the market pain may not end tomorrow, we’ll begin the tariff clarification process that will result in the return of bullish conditions.

Back to Louis:

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.

We’ll report back tomorrow when Liberation Day details emerge.

Have a good evening,

Jeff Remsburg

Tantrum, hissy fit, meltdown… no matter what you call it, Wall Street had a very emotional reaction to the Trump 2.0 tariffs over the past few months.

The month of March capped off the worst month and worst quarter for the S&P 500 and NASDAQ since 2022. In the first quarter, the S&P 500 dropped 4.6%, while the NASDAQ plunged 10.4%. The Dow had a more muted fall, with a 1.3% decline in the first three months of the year.

Remember, the stock market is a manic crowd – it tends to react first and think later. So, the recent stock market correction was a gross overreaction to the Trump 2.0 tariffs and inflation fears.

I’ve actually been tracking the hysterical stories about how tariffs will cause inflation, and what I discovered is that the vast majority are from foreign sources. So, in today’s Market 360, we’re going to separate fact from fiction, and I’ll set the record straight about tariffs, inflation and slowing global growth. I’ll also share the stocks you can invest in confidently in this volatile market… and where you can find them.

Separating Fact From Fiction

Fact: The Trump 2.0 tariffs are meant to level the playing field.

President Trump has dubbed April 2 as “Liberation Day,” as reciprocal tariffs will be implemented to equalize U.S. tariffs. President Trump stated, “What they charge us, we charge them.”

The objective of the tariffs is to punish nations that have been serial abusers of using tariffs to protect their domestic industries and/or circumvent U.S. tariffs by using Mexico for subassembly. While President Trump did say on Sunday that the administration “would start with all countries,” he also noted that he “may give a lot of countries breaks.”

Now, two serial abusers are China and Mexico. It’s no secret that Mexico’s trade surplus has surged over the past several years. That’s because China has circumvented U.S. tariffs by doing subassembly in Mexico and importing goods under the cover of the North American Free Trade Agreement (NAFTA).

Another example is Vietnam. Vietnam has the third-largest trade surplus with the U.S., after China and Mexico. And in anticipation of the April 2 tariffs, Vietnam said it would cut tariffs on a few U.S. products like liquefied natural gas (LNG) and vehicles.

So, adjustments are happening, and new trade deals are being negotiated.

Fiction: Tariffs are inflationary.

While the foreign financial media has promoted the narrative that tariffs are inflationary, deflation has already emerged. In fact, China has reported widespread deflation in virtually all categories. Consumer prices fell into negative territory in February and wholesale prices have been stuck in negative territory for more than two years.

I should also add that the U.S.’s trade deficit has soared as goods were “dumped” in the U.S. to try to beat the impending tariffs. These excess goods are not expected to be discounted, and that could further spread the deflationary forces that have recently emerged.

So, the world economy is at risk of slipping into a deflationary spiral.

Meanwhile, inflation is cooling off here in the U.S. The Consumer Price Index (CPI) was unchanged in February and the Producer Price Index (PPI) declined. On the flip side, though, last Friday’s Personal Consumption Expenditures (PCE) index came in hotter than expected, mainly due to a more cautious consumer.

Headline PCE rose 0.3% in February and was up 2.5% in the past 12 months. Core PCE, which excludes food and energy, increased 0.4% last month and is up 2.8% in the past 12 months. Core PCE is the Federal Reserve’s favorite inflation indicator – and it clearly remains above the Fed’s 2% target. Economists’ estimates called for a 0.3% month-to-month rise and a 2.7% annual increase.

Also notable, consumer spending rose 0.4% in February, up from a decline in January. But that still fell short of expectations for a 0.5% increase. So, consumers remain cautious right now.

Overall, though, I don’t foresee the Trump 2.0 tariffs igniting inflation in the U.S.

Fact: The Trump 2.0 tariffs are set to encourage more onshoring.

President Trump has made it crystal clear that the German auto industry is welcome to move its manufacturing to the U.S. He’s noted that the U.S. offers cheaper electricity and labor costs, as well as less oppressive regulations.

Speaking of the latter, the European Union is still set to force the European auto industry to be 100% electric vehicles (EVs) by 2035. However, German auto manufacturers have not been able to make much money on EVs, so onshoring to the U.S. to make internal combustion engine (ICE) vehicles might be a strategic move for German automakers.

Interestingly, President Trump’s executive order last Wednesday to implement 25% tariffs on all imported vehicles, regardless of the country of origin, may push other automakers to explore expanding their U.S. manufacturing facilities.

In the meantime, $1.2 trillion in technology onshoring has already been announced. Apple Inc. (AAPL) and NVIDIA Corporation (NVDA) announced $500 billion and $100 billion, respectively, in onshoring projects in the U.S. And if more technology companies, as well as pharmaceutical and vehicle companies, onshore operations to the U.S., there could be several trillion in onshoring!

The reality is onshoring is the real goal of the Trump 2.0 tariffs – and you will not hear that from the hysterical foreign media.

Fiction: The U.S. is on the verge of recession.

As the recent earnings announcement season wound down and tariff mania took hold, the Atlanta Fed revised its Gross Domestic Product (GDP) forecast down. It now expects the U.S. economy to contract in the first quarter – and that rattled Wall Street.

The primary reason why GDP growth is forecast to be negative in the first quarter is due to a big trade deficit, which is because of all the dumping of imported goods and an increase in gold inventory. Speaking of the latter, gold surged 25% in February after soaring 43% in January, based on Comex stockpiles. The imports of gold from Switzerland have also soared to the highest level since 2012.

So, the trade deficit is now deducting a whopping 4% from first-quarter GDP growth. In other words, excluding the trade deficit, the U.S. economy is still growing.

I should also add that none of the economic tea leaves signal a recession. Both Treasury Secretary Scott Bessent and Federal Reserve Chair Jerome Powell recently stated that the U.S. economy is “healthy.”

The fact is there have been some positive economic reports recently: the strongest factory goods orders report in a year and a surprising jump in existing home sales. Furthermore, the Institute of Supply Management (ISM) posted positive readings for its manufacturing and service sector PMIs.

Also, as we just discussed, the Trump administration is soliciting trillions in onshoring. If successful, that should boost GDP growth. So, the U.S. is not at risk of falling into a recession.

Fact: More respectful trade talks have ensued.

One of the biggest trade agreements the U.S. has is the United States-Mexico-Canada Agreement (USMCA). This went into effect under Trump 1.0 in July 2020. The agreement is set to expire in 2026, and Trump 2.0 wants the USMCA to be the “fairest, most balanced and beneficial trade agreement we have ever signed into law.”

Interestingly, President Trump recently praised Mexican President Claudia Sheinbaum, which is a positive development. Another positive development is that Commerce Secretary Howard Lutnick has had some success negotiating with Ontario Premier Doug Ford, as he lifted the proposed 25% tariff on hydroelectric power.

The new Canadian Prime Minister, Mark Carney, also recently stated that Canada can only go so far in responding to the new import taxes imposed by the U.S., given the mismatch in size between their respective economies. So, Carney said, “We are not trying to organize coordinated retaliation.”

This is a positive sign that the tariff debate has moved behind closed doors, with Lutnick and other trade representatives sitting down to negotiate. In other words, cooler heads are prevailing, and new trade agreements are anticipated.

The Bottom Line

It’s not always easy to separate fact from fiction, especially when Wall Street reacts to every headline and stocks are spiraling lower. But I hope that our closer look at the Trump 2.0 tariffs and their impact on inflation and the U.S. economy helps set your mind at ease.

The reality is that the Trump 2.0 tariffs are largely about settling trade imbalances and pushing foreign corporations to increasingly onshore to the U.S. – all of which should ultimately boost the U.S. economy.

So, despite the continued tariff distractions, the U.S. is now in the midst of an economic renaissance. Economic optimism should steadily rise following “Liberation Day” tomorrow – and continue to rise in the upcoming months.

Positive economic optimism coupled with continued strong corporate earnings and lower interest rates should serve as a powerful one-two-three punch that propels economic growth dramatically higher. And that should also translate to higher stock prices.

So, I continue to encourage you to tune out the noise and focus on the facts. And don’t let the uncertainty or market volatility scare you out of the market either. I am confident that in the end, when all the dust settles, companies that have very strong sales and earnings will lead the market higher.

I expect my Growth Investor stocks to be among the leaders, as they remain backed by 22.4% average annual sales growth and 79.4% average annual sales growth. Plus, the analyst community has increased earnings estimates 4.4% higher for my average Growth Investor stock in the past three months. So, the analyst community remains very positive on my stocks.

In other words, those who follow my Growth Investor stocks can invest confidently. These are the stocks that exhibit tremendous relative strength and begin to rebound quicker than most.

If you’d like to view my Buy List stocks, join me at Growth Investor. You’ll also have full access to my Special Market Podcasts, special reports, and past Weekly Updates and Monthly Issues. I’ll be releasing a new Special Market Podcast tomorrow to review the tariffs and the market’s response. While I will cover Liberation Day in Thursday’s Market 360, if you want my first thoughts on Wednesday, sign up for Growth Investor today.

Sincerely,

Louis Navellier

Editor, Market 360

P.S. Wall Street may be focused on tariffs right now, but we can’t forget what will really disrupt the market: artificial intelligence. For the past few years, my InvestorPlace colleagues, Eric Fry and Luke Lango, and I have been warning about a massive technological divide we call the “Technochasm” – and our predictions have proven alarmingly accurate.

Now, we’re sounding the alarm about an even more dramatic acceleration of this trend, driven by AI’s explosive growth. But if you position your portfolio correctly, you can not only protect yourself from this divide but potentially profit enormously from it.

We just issued urgent buys on six stocks that could surge in the coming weeks and months, as AI enters its destructive phase. You can learn more about how this will all play out in the markets and the names of these six stocks by watching this time-sensitive video. But please watch soon, because this video will be taken offline tomorrow at midnight. Click here to watch it now.

The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:

NVIDIA Corporation (NVDA)

Welcome to the ultimate Tariff Week, folks – perhaps the most dramatic episode of global economic theater since 2020’s COVID lockdowns began. 

Tomorrow, Wednesday, April 2 is the big one: now known across trading desks as “Liberation Day.” That’s when U.S. President Donald Trump is expected to drop the hammer with a sweeping new set of tariffs that could restructure the entire global economic order.

Naturally, investors are nervous right now. And who can blame them?

The numbers tell the tale. The S&P 500 has cratered more than 10% from its all-time highs. The Nasdaq is down roughly 15%. And the Russell 2000? It’s flirting with a 20% nosedive.

That makes this the biggest market correction since 2022. And while volatility isn’t exactly a stranger to Wall Street, this one hits differently… 

Because it’s not about interest rates, earnings misses, or some overhyped AI stock that turned out to be smoke and mirrors.

This is about the fundamental rules of global commerce being redrawn in real time.

The Tariff Toll on Markets

If you’ve been watching the markets over the past month, you’ve basically been locked into an emotional hypercoaster – with no safety harness.

It started back in February, when Trump floated the idea of universal tariffs on all countries and triggered a sharp leg down in stocks. Investors braced for a full-scale global trade war.

Then came the walk-back.

By mid-to-late March, the narrative had shifted to more “surgical” trade policy: targeted tariffs on the “Dirty 15” – the 15 countries with which the U.S. runs its largest bilateral trade deficits. That shift was enough to spark a brief but powerful relief rally, as cooler heads seemed poised to prevail.

But now? Here we go again.

Over the weekend, reports began circulating that Trump’s team was reconsidering the idea of blanket tariffs on all countries. This messaging unravelled the prior “targeted” narrative and sent markets plunging back to the March lows. It’s been a nonstop whiplash cycle of panic, hope, panic again; and no one knows what to believe anymore.

All these violent swings have left stocks in a very precarious – or maybe promising – technical situation… 

What’s to Come on Wednesday

The S&P 500 has officially broken below its 250-day moving average for just the second time since this AI-fueled bull market began. That level has acted as the market’s trampoline in the past. But when it breaks? Things tend to go from bouncy to bloody in a hurry.

Historically, dips to this level result in one of two outcomes:

1. A monster rebound rally that leaves short sellers in the dust; or
2. The beginning of a true bear-market meltdown.

This is a technical tipping point. And with “Liberation Day” looming, the fundamentals are about to either validate or obliterate the charts.

So, with all this volatility, uncertainty, and tariff brinkmanship… are we panicking?

Not quite. 

We still think Liberation Day won’t be nearly as bad as feared. Our take? Trump’s threat of universal tariffs is mostly bluster – an opening chess move, not checkmate.

Our base case remains:

• Tariffs will be targeted, not universal.
• The Dirty 15 get hit, but not the world at large.
• And once the dust settles, fast-and-furious negotiations will begin.

As painful as tariffs are for the U.S., they’re even more devastating for just about every other economy involved. Europe, Canada, South Korea, Japan – they have more to lose; and they know it.

These nations have significant export sectors, and a large portion of their GDP comes from trade. The U.S. also has a more diversified set of trading partners than many of these countries do. So, if tariffs are imposed on a particular country, it would likely be harder for it to replace lost business with the U.S. market.

That’s why we expect rapid deals, quick walk-backs, and a broader deescalation through April.

In other words, we’ve reached the climax of this trade war drama.

After two years of strong performance, the stock market has struggled here in 2025. Paired with economic data that has surprised to the downside, the threat of a global trade war has weighed heavily on Wall Street. 

And it could all come to head just two days from now, on Wednesday, April 2 – what U.S. President Donald Trump is calling “Liberation Day.” 

That’s when Trump is set to announce a set of sweeping reciprocal tariffs against America’s biggest trading partners. And depending on their severity and longevity, they have the potential to fundamentally reshape the global economic landscape. 

Some think the tariffs are simply a negotiating tactic for the U.S. to strong-arm its way into better trading deals. Others think they could remain in place to help grow the nation’s depleted coffers. 

And the truth is that no one really knows. 

Indeed, as Yahoo Finance’s Ben Werschkul pointed out, “The vastness of possibilities appears to be widening after Trump recently teased that he ‘may give a lot of countries breaks’ and said Sunday night he could be ‘generous’ even as he quickly added that ‘all countries’ could be impacted. A campaign trail idea of blanket 20% across-the-board tariffs also appears to have reemerged as at least an option.”

Even National Economic Council Director Kevin Hassett told Fox News that he couldn’t give “any forward-looking guidance on what’s going to happen this week.”

An overwhelming amount of uncertainty continues… Can’t say we’re surprised. 

However, one thing we know for certain is that these tariffs – regardless of if they have staying power – will create enormous stock market volatility. 

Just look at what has happened in the last month…

The Trade War Has Weighed on Wall Street

On Feb. 1, 2025, Trump issued executive orders announcing tariffs on Canada, Mexico, and China, to go into effect on Feb. 4. This started the trade war drama that persists today. 

Since then, hardly any of the tariffs he has threatened or issued have stuck around, save a few against China. Still, the markets have tumbled. 

The S&P 500 dropped more than 10% from the middle of February to the middle of March. The Nasdaq fell almost 15%, and the Russell 2000 crashed nearly 20%. Collectively, the “Magnificent 7” tech stocks dropped more than 20%. 

Tariff uncertainty alone has created massive market volatility. 

The uncertainty could intensify this week on April 2, when Trump enforces even more – potentially even larger – tariffs. 

And if this trade war drama persists beyond that day, the market will keep reacting violently. 

Huge crashes when tariffs are announced; huge rebound rallies when they’re paused. Another big selloff when more tariffs come, then another big rebound when those tariffs are delayed…

Lather. Rinse. Repeat.