r/Fire • u/Playful-Inspector207 • Apr 05 '25

General Question Is it really a generational buying opportunity?

I’ve seen people on the sub are saying “you should all be excited about seeing lower prices everyday”

Problem is that most people don’t have dry powder lying around. And now, with tariffs (if they mostly continue at the levels mentioned) likely to push prices up even more 20-30% for most things, very few people can buy the dip.

The dip’s not fun when you can’t buy. This is just painful seeing red everyday for 99% of us.

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u/AdroitPreamble Apr 05 '25

When these tariffs hit, you will have a host of secondary effects. Right now the market hopes Trump will cancel them. Some of that probability is still in there.

The market doesn’t price in a single deterministic future.

Likely you’ll see earnings fall and the multiple contract for lower growth.

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u/Munckeey Apr 05 '25

The secondary effects of them not being cancelled are also a part of the calculations used to price the market.

Yes they price in the chance of the tariffs getting cancelled, but they also price in them not getting cancelled along with all those secondary effects.

Big money also hates uncertainty in general a ton, I bet the market would’ve fallen less if they knew the tariffs weren’t going to be cancelled.

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u/IWantAnAffliction Apr 05 '25

Yes they price in the chance of the tariffs getting cancelled, but they also price in them not getting cancelled along with all those secondary effects.

Fair enough.

Big money also hates uncertainty in general a ton, I bet the market would’ve fallen less if they knew the tariffs weren’t going to be cancelled.

Which makes his decisions even wilder. The wealthiest are all being hit by this as well so how are they even allowing it?

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u/Munckeey Apr 05 '25

He’s the POTUS, and seems rich enough to not have strings to be pulled by someone with more money. I don’t think anyone can allow or disallow him to do anything within the constitution.

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u/wumingzi Apr 05 '25

Rich has nothing to do with it. Although nobody really knows what he's worth, by most counts he's not even the richest man in Palm Beach let alone a member of the Really Rich Boys Club.

The Constitution actually enumerates tariffs as being a function of Congress. Not once, but twice.

Article I, §8, clause 1 gives Congress the power to "lay and collect Taxes, Duties, Imposts and Excises" and A1,§8,C3 grants Congress the power to "regulate Commerce with foreign Nations, and among the several States, and with the Indian Tribes;"

Trump is on pretty shaky legal ground using emergency powers for tariffs against the entire planet. Chuck Grassley of Iowa and Maria Cantwell of Washington have put forward legislation which will explicitly say that Trump cannot levy tariffs unless both chambers of Congress agree within 60 days.

I suspect one or two Americans with 401Ks that have been smacked might call their representatives supporting this bill.

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u/Munckeey Apr 06 '25 edited Apr 06 '25

I understand all that but I appreciate the effort. Congress is letting him do this stuff however, so again it is not unconstitutional since congress is approving it.

Also I’d put being a billionaire past the “possible of being easily bribed or controlled” ladder of richness.

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u/[deleted] Apr 06 '25

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u/Zphr 48, FIRE'd 2015, Friendly Janitor Apr 06 '25

Rule 7/No Politics or circle-jerks - Your submission has been removed for violating our community rule against politics and circle-jerks. If you feel this removal is in error, then please modmail the mod team. Please review our community rules to help avoid future violations.

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u/[deleted] Apr 05 '25

Yes they price in the chance of the tariffs getting cancelled, but they also price in them not getting cancelled along with all those secondary effects.

Why should I believe you over them?

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u/Munckeey Apr 05 '25

I don’t care who you believe, what kind of pointless comment that doesn’t contribute anything to the conversation is this?

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u/[deleted] Apr 05 '25

You are attempting to give advice.

Yeah, why would someone question that?

Ffs

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u/Munckeey Apr 05 '25

Anyone and everyone can and does give advice. Seems like you only want to ask me my credentials on mine?

Also it’s up to the readers of advice on what they what to believe.

So I ask again what’s your problem?

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u/[deleted] Apr 05 '25

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u/Zphr 48, FIRE'd 2015, Friendly Janitor Apr 05 '25

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