The damage to the economy is becoming undeniable as we face government layoffs, spending cuts, tariffs, and increasingly strained international relations. The Trump administration’s policies have angered some of our closest allies, deported countless individuals, and led to the harassment of international travelers—some even facing imprisonment at the border. The economic fallout is beginning to hit hard, with companies like Delta warning of a 50% reduction in profits due to a dramatic slowdown in travel. The travel sector is suffering, and it’s just the beginning.
Big names across various industries are feeling the pressure: Accenture has flagged government IT contract cuts, Nike is sounding alarms about the impact of tariffs, and Lennar, Costco, Best Buy, Walmart, and Williams Sonoma have all been hit hard. The AI bubble is bursting, too, as Chinese tech giants like DeepSeek, Alibaba, Foxconn, and Baidu expose how NVIDIA’s GPUs are being vastly underused for AI applications. The end result is clear: the demand for NVIDIA’s hardware will likely slow dramatically, significantly stalling future revenue growth.
The signs are unmistakable: market upside is quickly becoming a fantasy, while the downside risks grow larger by the day. Growth is slowing at a staggering pace, and historical data shows that stocks tend to fall around 30% during recessions. That’s almost a guarantee, in my opinion.
The MAGA movement seems oblivious to the fact that the U.S. is just 4.5% of the world’s population, while China alone comprises 17%. Antagonizing the rest of the world is not the way to boost profits for multinational corporations or the stock market.
Stagflation is on the horizon. A toxic mix of high inflation, stagnant economic growth, and rising unemployment is unfolding—a nightmare scenario for policymakers because fixing one problem worsens the others. Trump’s policies are accelerating this crisis. His tariff wars are driving up prices, fueling inflation. Mass layoffs of over 100,000 government workers will spike unemployment. Economic growth is already faltering under spending cuts, trade disruptions, and declining business investment. Unless there’s a shift in strategy, the outcome is inevitable. Stagflation isn’t just a risk—it’s a looming reality.
Smart investors are already starting to shift their portfolios. If you’re still holding onto risky assets, it might be time to move your 401(k) and mutual funds into safer alternatives like the Vanguard Federal Money Market Fund, currently paying 4.32%—a safe, risk-free option as the market braces for inevitable declines. A 30% drop from here would take years to recover, so the smart money is already playing defense.
Trump is doing it for the long-term good, but in the short term, it’s going to hurt.
