What I’m Doing While Everyone Else Is Panic Selling

We're getting some reliable bottom signals...

We're living through a self-inflicted financial crisis.

Whatever you think about President Trump, it’s hard to argue the economic merit of imposing blanket tariffs—seemingly calculated last-minute by ChatGPT—on every country on Earth, including ones where the only residents are penguins.

As I've said a few times over the last few days, this is the worst economic own goal I've ever seen.

And yet… it’s happening. As we’ve been discussing for weeks, this is part of what I’ve called a “controlled demolition” of the U.S. economy. Whether or not it’s a good idea is beside the point—they’re doing it. The goal is to drive down Treasury yields so the government can refinance our debt at lower rates.

This was just a theory I developed until this morning when President Trump shared a video detailing my exact "controlled demolition" thesis on his Truth Social account.

This isn’t something I’m happy to be right about. It’s the policy equivalent of burning down your house to cook a steak.

Markets have responded by pricing out pro-growth policies—tax cuts, deregulation, spending reforms—and pricing in economic pain. But I’m starting to see signs that this bad news may finally be priced in.

Which means it’s time to get a little more aggressive with our cash.

Listen to the "Fear Index"

You’re never going to perfectly time the top or the bottom of the market. But I have a few tools I rely on to help identify major turning points. And one of my favorites is a VIX spike.

We finally got one today.

The VIX—aka the “fear index”—briefly touched 45 this morning. These kinds of panic spikes are incredibly rare… and incredibly useful.

In fact, when the VIX spikes above 40, the S&P 500’s average 12-month return is 21%—nearly double the long-term average.

We have raised a ton of cash over the last month since I developed my "controlled demolition" theory. And while it's scary out there, the only time I've seen markets at this level of panic was during the COVID-19 Crash.

That also happens to be when I made some of the best investments of my life.

And with the VIX spiking, it's our cue to put some cash to work.

Here's What I'm Buying Today

First off,