Hold on Tight!

Market Volatility is the name of the game insofar as Trump’s tariff policies are concerned (as we wrote earlier this month HERE).

• More T2DPulse data. To that end, we have added the VIX to T2DPulse, as well as the 10-Year Treasury.

• Bumpy ride. I expect a choppy NASDAQ for the remainder of April into May, as Technology companies report earnings.

• M&A and IPOs: The level of uncertainty generated by tariff policy will curtail IPO and M&A activity.

  • No management team wants to hit the road to pitch an IPO when they have little visibility into bookings.

  • Similarly, few companies will be willing to pull the trigger on an M&A transaction given uncertainty around target company sales pipelines. Target company valuations will have to come in further.

• Downward estimate revisions. A number of Technology companies will likely lower guidance, or issue language that points investors toward the lower-end of previously-issued guidance.

• Take the pain now. My free advice to companies is that it is better to take bad-tasting medicine now rather than risk missing June Quarter numbers in July, or having to pre-announce a June Q miss.

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