Hey Listen! Is the Stock Market Finally Calming Down After Tariff Turmoil?!

Hyrule's Markets on the Brink!

Greetings citizens of Hyrule! Or as you might call yourselves 'investors.' Princess Zelda here reporting live from… well my castle which is probably more stable than the stock market these days. It seems Wall Street has been having quite the adventure much like Link's quests but with less sword fighting and more number crunching. The big news? All three major averages—the Dow Nasdaq and S&P 500—took a tumble this past week. 'Great Deku Tree' indeed! Let's just say my Triforce of Wisdom is tingling with uncertainty. I wonder if I can use the Ocarina of Time to go back and short the market…hmm…

Trump's Trade Triforce: Hope or Hoax?

Ah but fear not brave investors! There's a glimmer of hope on the horizon. Apparently some folks believe the worst is behind us now that it looks less like the U.S. is going to go solo against the entire world in a trade war. One sage Marko Papic of BCA Research even thinks President Trump might pull off a heroic feat: 90 trade deals in 90 days! Sounds like a quest Link would undertake though I suspect even he'd ask for a bigger sword… or maybe just a well rested Epona. I'm not holding my breath but who knows? Maybe he'll find a hidden Triforce of Trade.

Volatility: The New Cucco?

However Papic also warns that volatility is still lurking ready to peck at your portfolios like an angry Cucco if you aren't careful! He expects the S&P 500 to test its low again which sounds about as fun as fighting Darknuts without the Hammer. But he suggests this dip could be a good opportunity to 'add exposure.' In other words 'git gud,' as the kids (and some Gorons) say. Jay Woods from Freedom Capital Markets agrees that the worst fears seem to have passed but warns that we have to wait and see if our market is truly okay or if it just ate a Lon Lon Milk.

The Fed's Fairy Intervention!

Adding to the mix Wells Fargo's Christopher Harvey believes that if the S&P 500 falls below 5,000 the Federal Reserve might swoop in like a fairy to save the day with a 'Fed put.' Sounds like a magic spell doesn't it? He suggests sticking to low volatility stocks to weather the choppy waters which is basically like equipping your Hylian Shield before facing a horde of Moblins. Meanwhile Fundstrat's Tom Lee thinks the market's moves are driven by 'headlines' rather than fundamental developments. Basically it's all just smoke and mirrors much like some of Ganon's tricks!

Earnings Season: A Boss Battle?

And now folks we approach the final boss: earnings season. Over 120 S&P 500 companies are set to report including the Magnificent Seven (sounds like a group Link would team up with doesn't it?). So far things are looking…decent. About 72% have beaten expectations. But as FactSet's John Butters points out companies that lower guidance are getting punished. It's a harsh world out there folks! Remember a strong defense (diversified portfolio) is the best offense unless you have the Master Sword of insider trading which I definitely do NOT recommend.

The Week Ahead: Map Out Your Strategy!

The week ahead is packed with economic events like a treasure chest overflowing with rupees! Keep an eye on leading indicators Philly Fed talks and a whole bunch of earnings reports. Oh and if you're feeling fancy you can even attend a CNBC Pro LIVE event at the New York Stock Exchange. Sounds like a place where you might find the Triforce of Capital or at least a decent cup of coffee. That's all for now folks! May the Triforce be with you…and may your investments prosper! Don't get cocky; I can easily get my Loftwing.