March 4, 2025
The first week in March is proving to be a very volatile week regarding the economy. On Tuesday at 12:00AM, Trump claims that 20% tariffs will go into effect for Canada and Mexico, and another 10% on China.
On Monday, the markets responded negatively regarding the threat of tariffs actually going into effect.
On Monday morning the DJI Index (Dow Jones), opened up at 44,900.49. But as expected, the markets dropped to a low of 43,160.68, which was a 1.55% loss with the final figure for the day being 43,160.68. That was a total loss in one day of 680.23 points.
But at market open, the market shot up to 44,033.8, because of Tesla and BitCoin. But it took less than 30 minutes for all of the gains to be sold off, and the Dow Jones Industrial Average went into the negative and never really came back.
Dow futures on Tuesday morning are looking positive, but not nearly as much as the futures were on Monday morning.
So what does ‘futures’ mean. Actually, the idea of what it means is fairly simple. Futures is a birds eye view of what will happen at market open. So you may wonder how anyone would know if the markets are actually closed until 9:30AM ET in the United States. That’s because the markets in the U.S. follow the markets that have been open at least 6 hours before the markets opened in the U.S. The U.S. markets will follow what is going in Europe at 9:30AM E.T.
The prediction now since the markets are now open in Europe, is that the markets will open slightly higher than Mondays closing figure. But unfortunately, the markets are expected to free fall even more than what happened on Monday. Why? Because Trump will initiate the tariffs on midnight before market open. To make it worse, Trump cannot help himself by making crazy announcements when he addresses Congress on Tuesday night on Prime Time TV.
Expect a very volatile day regarding the markets, and another day of crazy sell-offs on Wednesday, after what I can already call a disastrous speech, full of lies and false promises that only Donald J. Trump would give on such a stage, because he is hungry for attention.
Regarding Ukraine, several Congressmen cozied up to the president of Ukraine during his visit to the White House will openly turn against him when Trump claims he will no longer support the war in Ukraine when he speaks on National TV on Tuesday night. As of Monday, Trump has stopped all military support for Ukraine. All shipments are stalled unless Trump allows them to continue to Ukraine to help fund the war. Stopping supplies to Ukraine gives Russia a logistical advantange in the war.
On top of this, Trump is siding with Putin of Russia and is expected in the next few days to give monetary relief to Russia. What does this mean? It means no less that Donald Trump has done an about face with American policy regarding Russia and Ukraine. Trump has decided to change sides and now support Putin. No other president in American history has every done such a thing. He is the ONLY American president that has sided with Russia in a war. The United States has never sided with a country that attacked a Democratically controlled country. The president has decided to not support the Democratically elected president of Ukraine, but instead support a dictator and murderer named Putin.
This, on top of what Trump is openly doing to our economy, will set the United States back for years, with the economy, and with relationships to other countries, especially our closest neighbors, Canada and Mexico.
There will be daily updates on this website regarding the economy, and a report of Trumps talking points with his message to Congress which will be televised on Tuesday night.