New Energy Weekly – The Worst Has Occurred

Well, the worst has occurred

The on again, off again trade wars scared the market into correction. Money flowed out in a torrent, as you can see in the chart below.

To make this worse, there is no goal or potential endgame for these tariffs. They are essentially at the whim of the current administration. That kind of uncertainty drives the market crazy.

Imagine trying to plan and build a multimillion-dollar factory in this current climate. The uncertainty is literally paralyzing executives.

We hope that this won’t continue for all of 2025. However, the U.S. economy currently sits on the brink of recession. We believe the next couple of months will be critical.

The month of March is the end of the first quarter. This will be the bellwether for industries to tell us what they expect for the rest of the year. And this news could be quite bad.

That’s why we spent so much time preparing our portfolio for bad news. We are happy to sit on cash right now. That makes watching this current stock market decline a little bit easier. Because we know that the cash in our account now can be used to buy great stocks cheap, in a few months.

For the Good,

The Mangrove Investor Team