Why tariffs 'aren’t the problem' in the stock market: Veteran trader

Published On Mar 3, 2025, 6:09 PM

Veteran trader Kenny Polcari argues that investors are overreacting to tariff news, suggesting that the real issue is investor panic rather than the tariffs themselves. While markets are volatile due to escalated trade talks and announcements about tariffs on imports from Canada, Mexico, and China, Polcari believes that the long-term effects of these tariffs will be neutral. He advises investors to maintain a level head and focus on companies with strong fundamentals rather than panicking and selling off stocks in response to tariff headlines. Thomas Hayes, another market expert, echoes this sentiment, emphasizing the importance of assessing long-term business conditions over short-term tariff impacts.

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Investors should look for stability and strength in companies’ financial health and not overreact to tariff-related news that could be temporary. Industries that show resilience in the face of tariffs may present buying opportunities, especially for firms with diversified supply chains and robust pricing power.

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