Trump Just Broke the Stock Market… And It’s Not What You Think

President Trump just dropped big tariff threats on China, India, and Brazil, and the stock market doesn't know how to react. Well, now some countries are fighting back, notably the BRICS nations, that's Brazil, Russia, India, China, and South Africa, are banding together against the United States to combat tariffs. And not surprisingly, President Trump doesn't like that. In response, President Trump is now raising tariffs on those BRICS countries and any other country that chooses to follow quote, anti-American policies. And as you can imagine, the knee-jerk reaction to all of these changes is immediately felt in the stock market, which creates investment opportunities for the financially savvy. That's why in this video, I'm going to show you what 90% of investors won't do, but you probably should. The economy moves the stock market, but they don't always move together. Take a look. The light blue line is the stock market and the dark blue line is the economy. And while the stock market and the economy generally move in the same direction, they don't always move together. And we have no shortness of that craziness in the stock market today. Like Business Insider says, the stock market is riskier and more volatile than it was in past decades. For most people, when they hear volatility, that means stress, it means anxiety, it means panic. But for the financially savvy that know where to look, it creates opportunity to grow your wealth even faster. I'll show you what I mean. In the beginning of August 2025, these were the headlines. The stock market sees its worst week in months. The Dow Jones is seeing its worst week since Liberation Day in April 2025. Now fast forward a few weeks to the end of August 2025, the same month, and this was the main headline. The stock market just closed at a new record high. So we know that the stock market volatility creates a lot of negative emotion for the majority of people, but for the financially savvy, it creates opportunity. Now, in order for you to actually capitalize on the opportunity, you need to know where that opportunity is, but also what is causing this volatility to happen in the first place. And there are two main things that are contributing to this volatility. Number one, it is obviously the tariffs. And then number two are interest rates. Now, this is where I do want to let you know that if you are an investor or want to become an investor, I just put together a brand new investing masterclass where I'll walk you through how you can find better investment opportunities by using a system. And I'm going to show you the same research and system that my team at Briefs Pro uses to find investment opportunities before the crowd. It's a completely free masterclass. There's a ton of value in there. So if you want to watch this masterclass for yourself, all you have to do is register and I have the link for you down in the description below. And when you sign up, you're also going to get Market Briefs, my newsletter for investors for free as a bonus. Now, when it comes to the tariffs, this is what I've already been discussing in this video. There's a lot of uncertainty when it comes to tariffs and Wall Street hates uncertainty because people question, are these new tariffs going to cause a recession? Are these tariffs going to make inflation worse? What are the tariffs going to look like in 12 months? And we don't really have the answers to that. So anytime you hear more news about tariffs, it creates uncertainty, which creates volatility, which then can create emotional responses or opportunity. The second thing is, of course, interest rates. Interest rates are kind of like an engine that drives the economy because higher interest rates make it more expensive for businesses to borrow money and grow their businesses. They make it more expensive for people to buy a house and a car, but they're also necessary at some points to have higher interest rates. Likewise, lower interest rates make borrowing money cheaper. And we live in an economy that runs on spending, not just based off of money, but based off of credit. So when you have lower interest rates, more people are likely to borrow money to buy a house and borrow money to buy a car and borrow money to put on their credit card. And businesses are more likely to borrow money to grow their businesses so it can spur more spending. Not that you should go out and because you think that that's the patriotic thing to do. You should be smart with your money, but that's what happens. And so when people go out and borrow more money, that means more spending happens, which can then grow the economy. And there's been a lot of uncertainty when it comes to interest rates, which creates volatility, which can then create these emotional responses, but it also creates opportunity. What do I mean? President Trump has been demanding lower interest rates, but it's not the government who gets to decide what the interest rates are going to be. Interest rates are set by our central bank in the United States, who is known as the Federal Reserve Bank. Now, although they're called the Federal Reserve Bank, they're actually not a bank. You and I can't go there to deposit money. They're not a reserve because they're not sitting on any cash reserves and they're not federal because they're not a part of the United States government. It even says so on their website, which is why even if President Trump says, I want 1% interest rates, he can't demand it and get it because the Federal Reserve Bank has to actually authorize that. And up until now, the Federal Reserve Bank says, no, we're not going to cut interest rates because we're concerned about inflation and tariffs. So we're not cutting interest rates yet. And this is where President Trump has made it very clear that he wants to replace the chairman of the Federal Reserve Bank come 2026. Once his term expires, he can't technically fire the chairman of the Federal Reserve Bank, at least not very easily because it's not a part of the federal government. And President Trump has tried to fire some of the governors at the Federal Reserve Bank, but it's not a very easy process. But all of that creates uncertainty. What does the uncertainty do? It creates volatility. That volatility then creates an emotional response, but it can also create opportunity. So now that you understand that, let's talk about how do you actually capitalize on the opportunity? I'm going to assume that you've already established the basics. You already have some extra cash saved up. You don't have any credit card debt. Now you have some extra money that you want to invest in the market. How do you actually capitalize on that opportunity? And this is not going to be rocket science, but these are three very important steps. Number one is you want to find a good asset. Spend the time right now to research what it is that you want to invest. If the stock market were to be cut in half tomorrow, what stock would you want to buy? Is it the stock? Maybe it's an ETF. Do you want to invest in the S&P 500? Is it a specific type of fund? What is it? Make a list. I mean, seriously, go to Google Sheets, create an Excel sheet, write it down on a piece of paper. Write down the top five investments that you would want to invest in. It's almost funny to me that people start researching stocks the day that they want to make an investment. But the good investors, the financially savvy investors are doing the research constantly. That way they can find what they want to invest. And then when they see a good price, that's what they want to buy. So number one, make that list of the things that you want to own. Number two, confirm it. Okay, do the actual research. And I want you to try to question yourself and try to negate yourself. And what I mean by that is listen to opposing views about that stock. Listen to people who say that this thing that you want to buy is a bad investment. Listen to the people that say it's a good investment. That way you can hear both sides of the argument because if you just listen to the people saying that this thing is going to go up, well, yeah, you're going to get into this confirmation bias that, oh my God, this is the best thing in the whole wide world. But try to prove yourself wrong because there's a lot of reasons that you could be wrong. So confirm that it's good. This is super, super, super important. Once you have that, now buy it when it's cheap. I mean, the reality is the markets go up and down. 2025 has been one of the most volatile years that I have seen in a long time in the stock market. And we have seen three stock market crashes in 2025 alone. So anybody who was understanding this was able to buy investments at a great price in each one of those crashes. How do I know? Because, well, we were doing that. So in February 2025, President Trump first announced tariffs. What happened? Markets freaked out and markets crashed. But then not that long after that, President Trump canceled the tariffs and the markets went back up again. In March, President Trump reannounced tariffs and made them even more aggressive. What happened? Markets crashed even stronger. And then a few days later, President Trump canceled the tariffs and markets hit new record highs. And then came April, Liberation Day, and President Trump came out with a big board with tariffs on countries from around the world. I think you can, for the most part, see it. Those with good eyes, with bad eyes. We didn't want to bring, it's very windy out here. We didn't want to bring out the big charts. And now markets around the world crashed. And they crashed for now days until he ultimately put on a pause on the same tariffs and markets hit a brand new record high again. The people that were buying in each one of those were able to buy good investments that they confirmed at a cheap discounted price. Now, hear what I'm saying very carefully. Markets go up, markets going to go down. We're going to see a crash happen again. We're going to see a recession happen. We're going to see all these bad things happen. But that's why this is so important. You want to own good assets because good assets are going to survive those downturns, at least have a better chance to survive those downturns. Because the reality is, investing is risky. You are never guaranteed to make money when you invest. In fact, you will lose money at some point. So make sure you always do your own due diligence and never blindly trust a random guy on YouTube. The whole idea is you want to own good investments that you want to own for the long term. We're not talking about trading here. We're talking about investing. And you want to own these investments for the long term through the ups and the downs. When the downs happen, they give you the opportunity to buy a good investment at a discounted price. See, when Macy's has a sale or Amazon has a Cyber Monday sale, people are lined up, ready to buy. But when the stock market goes on sale, people run away. They panic. They freak out because they think the world is going to end. But if you find the good investments first, all you want is a good price. And when you see the good price, well, then that creates a good opportunity for you. What I talk about a lot when it comes to recessions is a concept called, I want you to pay attention here, it's a very important concept, a technical concept called POOP. P-O-O-P. Panic leads to overselling, leads to opportunities, leads to profits. But I think it's a good analogy here, too, when we're not talking about recessions, because when people panic, especially when you have a lot of volatility, that creates overselling of good assets. It also creates overselling over bad assets, too. You want to know what the good assets are. I'm not going over how to actually research the stock in this video, but that's what you're doing here. You want to make sure it's a good asset. When you see the overselling of the good asset, it creates an opportunity to profit if you own it for the long term. Because if it's a good investment, then other investors will ultimately realize, hey, this company is growing. It's making bigger profits. It should be worth a whole lot more. And you were able to buy it at a discounted price, which means you're able to And that's why volatility creates opportunity for the financially savvy, while for everybody else, it creates a lot of emotional responses. And I want you to be one of the people that can capitalize on these opportunities, find better investment opportunities as long as they fit within your portfolio, but just understand that it has to fit within your strategy. I have a ton of videos on my channel that you can watch where you'll see me kind of break that down if you want more help on that. And if you are an investor, want to become an investor, you can watch my investing masterclass to learn more. And of course, the best thank you if you got value out of this video is to share this video with a friend, a family member, colleague, or a fellow investor. According to Forbes, banks are quietly tightening up their lending standards, meaning it's getting harder for people and businesses to get a loan. We've seen this happen before. In the past, with banks who get stricter about their lending practices, it has been an indicator for an economic slowdown. And now with banks tightening the lending standards again in 2025, the question is what's coming next?