Market Mondays #252: Trump’s Tariffs Deadline, Gold Skyrockets, Recession Fear, AI Stocks & Financial Advice for Couples

Release Date: April 1, 2025

Hosted by EYL Network featuring Ian Dunlap, Rashad Bilal, and Troy Millings

1. Community Focus: Marathon Burger and Nipsey Hussle's Legacy

The episode kicks off with a heartfelt tribute to the legacy of the late Nipsey Hussle. The hosts, Rashad Bilal and Troy Millings, delve into Marathon Burger's community impact, emphasizing the importance of employing local residents who might otherwise lack opportunities.

Troy Millings (02:55): "They’re employing the neighborhood. Not just the community. These are people that a lot of other people wouldn't have given opportunities to."

The discussion highlights how Marathon Burger not only serves quality food but also fosters community growth by providing jobs to individuals facing various challenges. This initiative is seen as a continuation of Nipsey Hussle's vision to uplift his community.

2. Current Market Overview: Tariffs, Recession Fears, and AI Stocks

The conversation shifts to the broader economic landscape, focusing on the impending tariffs set to take effect on April 2, which President Trump has dubbed "Liberation Day." The hosts express concern over the lack of a clear policy pathway, which they believe is creating market turmoil.

Ian Dunlap (11:10): "No roadmap leads to high returns. That’s why... the market does not like any uncertainty."

They discuss the significant downturn in major stock indices, with 327 stocks down 50% year-to-date, and the fear of an impending recession. The interplay between political decisions and market performance is a central theme, emphasizing that understanding macroeconomic policies is crucial for investors.

3. Investment Strategies in Uncertain Times

Amidst the uncertainty, the hosts advocate for sticking to fundamental investment principles. Ian Dunlap emphasizes the importance of adhering to basic technical and fundamental analyses without deviating based on market hype.

Ian Dunlap (13:17): "Stick to the basics. Whatever your fundamental breakdown is and your technical breakdowns are... don’t deviate from them."

Rashad Bilal adds that discipline in trading, avoiding overtrading, and having a well-formulated plan are essential strategies to navigate volatile markets.

Rashad Bilal (15:06): "Have a plan. Maybe it’s not ours, but you created one or formulated one that works for you."

4. Gold and Bitcoin as Investment Options

Troy Millings introduces the topic of gold, noting its significant rise as an investment asset, particularly in response to Trump's tariff policies. They reference billionaire Mike Novogratz's bullish stance on gold and Bitcoin, highlighting gold's status as a hedge against economic downturns.

Troy Millings (17:41): "Gold broke all-time records and has outperformed pretty much everything since Trump got elected at least."

Ian Dunlap concurs, suggesting that gold is a reliable asset to hold for the long term, especially during periods of high uncertainty.

Ian Dunlap (20:27): "Invest in gold as a hedge. Buy index funds."

5. Political Impacts on the Market

A substantial portion of the discussion revolves around the impact of political decisions on the economy and the stock market. The hosts critique the lack of expertise among elected officials, arguing that policymakers without a strong understanding of macroeconomic principles are contributing to economic instability.

Troy Millings (33:14): "The political system in America has no education requirements. That’s disturbing."

They debate the consequences of Trump's aggressive tariff strategies, questioning how long such policies will persist without adjustments and the potential long-term damage to the economy.

Ian Dunlap (25:33): "The market is going to be in turmoil. Until we get a clear policy pathway."

6. Automotive Industry and Tariffs

The imposition of a 25% tariff on foreign auto companies has led to a sharp sell-off in the automotive sector. The hosts analyze which companies might benefit or suffer from these tariffs, expressing skepticism about American car manufacturers' ability to withstand the pressure.

Ian Dunlap (70:35): "The entire car category to me is uninvestable. Neck and neck with airlines."

They highlight BYD, a Chinese electric vehicle manufacturer, as a potential beneficiary of the retaliatory tariffs, projecting strong sales growth in international markets.

Rashad Bilal (72:22): "BYD might be an investment based on the tariffs from a retaliatory standpoint."

7. Apple's Position and Monopoly Concerns

Apple's stock performance is scrutinized, with the hosts debating whether its current downturn signifies deeper issues within the company. They discuss Apple's monopoly status in certain markets and question the sustainability of its product dominance without continual innovation.

Troy Millings (81:35): "They have a monopoly. They have a working monopoly here. Everyone has an iPhone in America."

Despite the monopoly, concerns are raised about Apple's ability to maintain its market position amid fierce competition and political uncertainties.

8. Real Estate Market Outlook

The conversation transitions to the real estate sector, where the hosts predict an impending foreclosure crisis driven by rising delinquencies and economic strain. They discuss the potential opportunities for investors in distressed real estate markets.

Troy Millings (111:28): "A foreclosure crisis is coming."

Rashad Bilal suggests that strategic real estate investments could be lucrative in the wake of increased foreclosures and market downturns.

9. Advice for Couples and Expecting Parents

Towards the end of the episode, the hosts offer financial advice tailored to expecting parents and married couples. Ian Dunlap recommends adopting strategies like "house hacking" and utilizing VA loans to secure real estate investments early on.

Ian Dunlap (109:28): "If you can, take one income and invest it completely. Live off the other income for five years."

Troy Millings echoes the emphasis on strategic investments and prudent financial planning to safeguard against economic uncertainties.

10. Conclusion and Closing Remarks

The episode wraps up with a reiteration of the importance of disciplined investing and being prepared for a tumultuous market environment. The hosts encourage listeners to participate in upcoming events like Invest Fest and leverage educational resources to enhance their investment strategies.

Rashad Bilal (118:26): "We love you dearly. Reach out to your people. Text your people. Love is love, man."

They close by emphasizing that while the current market presents challenges, informed and strategic investing can mitigate risks and capitalize on opportunities.

Notable Quotes:

• Ian Dunlap (13:17): "Stick to the basics. Whatever your fundamental breakdown is and your technical breakdowns are... don’t deviate from them."

• Troy Millings (17:41): "Gold broke all-time records and has outperformed pretty much everything since Trump got elected at least."

• Rashad Bilal (33:14): "The political system in America has no education requirements. That’s disturbing."

• Troy Millings (81:35): "They have a monopoly. They have a working monopoly here. Everyone has an iPhone in America."

Key Takeaways:

1. Community Initiatives: Businesses like Marathon Burger play a critical role in community development by providing employment opportunities to local residents.

2. Economic Uncertainty: The lack of clear policy direction, particularly regarding tariffs, is fueling market volatility and recession fears.

3. Investment Discipline: Adhering to fundamental investment principles and maintaining discipline are essential strategies in uncertain markets.

4. Hedging Assets: Gold and Bitcoin are highlighted as potential hedges against economic downturns, with gold showing significant performance gains.

5. Political Influence: Political decisions without expert economic guidance are adversely affecting market stability and investor confidence.

6. Automotive Sector: Tariffs are heavily impacting the automotive industry, with Chinese manufacturers like BYD positioned to benefit.

7. Technology Giants: Companies like Apple and Microsoft face challenges despite their dominant market positions, raising questions about long-term sustainability.

8. Real Estate Opportunities: An impending foreclosure crisis could present investment opportunities for those prepared to act strategically.

9. Financial Planning for Families: Early and strategic investments, such as through housing and leveraging available loans, are crucial for financial stability.

10. Educational Resources: Engaging in events like Invest Fest and utilizing educational platforms can equip investors with the necessary tools to navigate complex market conditions.

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