Rudi’s View: You Can NOT Be Serious!

Rudi's View | Apr 03 2025

In today's update:

-Think Like A Farmer
-Share Market Optimists Are Disappointed
-A Warning From Yardeni
-Longview Warned First
-You Can NOT Be Serious!

By Rudi Filapek-Vandyck, Editor

There is a lot of negative criticism that can be hurdled at social media platforms (and I do join in at times) but every now and then something extremely useful will pop up, as it did this week.

Below is a message posted by Brian Feroldi on X (formerly known as Twitter). Feroldi is an ex-Motley Fool member who runs his own investor education service these days.

I see a lot of similarities with my own writings these past few weeks, as well as during prior times when the overall climate soured for financial markets.

Sometimes these simple sets of guidelines can keep the mind healthy and focused on what matters most.

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THINK LIKE A FARMER

-Don't shout at the crops

-Don't blame the crop for not growing fast enough

-Don't uproot crops before they've had a chance to grow

-Choose the best plants for the soil

-Irrigate and fertilise

-Remove weeds

-Remember you will have good seasons and bad seasons; you cannot control the weather, only be prepared for it

****

I assume everyone can identify the basic ingredients for a successful investment strategy in the share market?

Right now, as I have been advocating for weeks, it's time to remove weeds and prepare the portfolio for when better times arrive.

Some of my recent writings:

-https://fnarena.com/index.php/2025/04/02/rudis-view-time-for-appreciating-quality/

-https://fnarena.com/index.php/2025/03/26/rudis-view-captive-uncomfortable/

-https://fnarena.com/index.php/2025/03/19/rudis-view-navigating-the-trump-slump/

-https://fnarena.com/index.php/2025/03/12/rudis-view-preparing-for-tougher-times-ahead/

-https://fnarena.com/index.php/2025/03/06/rudis-view-to-sell-or-not-to-sell-2/

Share Market Optimists Are Disappointed

Markets are made by humans, not by robots and all the other excuses we often hear about.

While I and you (hopefully) have been careful and cautious, not expecting too much to come out of the US President's tariff intentions, in terms of positive ramifications, others have been happily telling investors to continue buying the dip because the future is bright and markets are simply having a careless hissyfit.

Trump's tariff announcement on Thursday morning Sydney time put all that optimism instantly on the backburner, to be replaced with dismay, disappointment and, in some cases, pure and unbridled rage.

If this wasn't as serious a matter as it is, this quick reversal on the day would be obvious material for comical satire.

Not wanting to point the finger, but Franklin Templeton sent multiple press releases into FNArena's inbox these past couple of weeks, arguing the future looks bright and weakness in markets simply means opportunity for investors.

That sanguine view seems to have changed from the moment Trump's Rose Garden event wrapped up. The press release I am staring at now highlights:

"The end of the free trade era."

"Recession and inflation are now more likely."

"Tariffs (...) will likely slow household and business spending and we expect them to increase the risk of US growth and earnings disappointments in 2025."

"The economic implications may not be the only impact as there will likely be foreign policy implications such as shunning US products and companies moving forward."

"Today's announcement will likely exacerbate worries about slowing US growth and sticky inflation. Price pressures from tariffs may keep the Federal Reserve (Fed) sidelined for at least the next few meetings."

Needless to say, the mood has soured at the firm, with talk about buying the dips now replaced with "we are cautious" and a suggestion bonds might offer a better return.

Humans! The aliens looking down upon us cannot believe the soap operas that are being played, time and again.