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This is Porter’s Daily Journal, a free e-letter from Porter & Co. that provides unfiltered insights on markets, the economy, and life to help readers become better investors. It includes weekday editions and two weekend editions… and is free to all subscribers.
Editor’s Note: Next week, Porter will launch one of the most audacious investment projects of his decades-long career. What he says could potentially create more wealth for his readers than anything he’s ever done before. For more details about his million-dollar mission – and how you can be a part of it – click here.
Stock markets are extremely volatile… Foreign governments are selling U.S. Treasuries… The days of American exceptionalism are over… Time-tested methods to profit in times of uncertainty… Joining Porter’s million-dollar mission… |
Table of Contents
We warned readers that Trump’s economic policies – love them or hate them – would likely precipitate a rocky road in the stock market.
And they have.
We are not surprised that U.S. stocks posted their worst quarter since 2022. Beginning in late February, the S&P 500 dropped 20% in a matter of weeks.
And we are also not surprised that the market rallied back, wiping out all those losses, and now sits in positive territory for the year.
And it’s anyone’s guess where the market will go next… another 20% drop when tariffs settle in higher than the market anticipates… or it will go up as the trade war with China and other nations seems to settle in a place that Wall Street loves.
But what’s even more troubling about the economy than the wild fluctuations in share prices is the crumbling of the foundation that has been holding it up since the middle of the 1900s.
The U.S. has benefitted from an era of relatively low interest rates, strong foreign investment in U.S. assets, and a dominant U.S. dollar at the center of the global financial system. While markets in China, Europe, and elsewhere have matured, for as long as anyone reading this can remember, U.S. stocks have been the biggest winners – providing the best returns of any asset class in any market in the world. This, in turn, attracted foreign investment that propelled the economy forward, helping us keep inflation low and bond yields appealing.
But now, this long period of financial exceptionalism is coming to an end.