In the latest episode of WBM, host Dennis Kneale delivers a hard-hitting analysis of the so-called “Trump Tariff Tantrum” that has sent shockwaves through Wall Street, as highlighted by Thursday’s Wall Street Journal headline: “Trump Backtracks, Pauses Many Tariffs,” paired with a companion story noting the S&P 500’s 9.5% surge. Episode 122’s B Block, titled “Three Market Veterans,” brings together seasoned experts Jim Iuorio, Ed Butowsky, and John Tabacco to dissect the market’s reaction, Trump’s strategic moves, and what investors can expect next in this turbulent economic landscape.
Kneale kicks off the segment by framing the narrative: Trump’s tariff pause—except on China—has sparked debate, with media calling it a retreat, while the veterans argue it was a calculated move. Jim Iuorio, a 38-year trader and co-host of The Futures Edge podcast, suggests the market’s reaction is overblown, likening it to a pendulum swing. He sees the tariff fears as a catalyst for de-risking after two years of excessive stock market gains, but he’s optimistic, having started buying stocks with a 2-3 year horizon. Iuorio also recommends metals and commodities like gold, silver, and copper, citing inflationary pressures from potential Federal Reserve actions and China possibly selling U.S. bonds.
Ed Butowsky of Chapwood Investments, with 37 years of experience, attributes the market’s plunge to algorithmic trading rather than tariffs, noting a 90-day tariff pause fueling a temporary 20-point market uptick. He predicts a “bungee jump” recovery before stabilization, dismissing recession fears by arguing GDP growth will slow but not turn negative. Butowsky is bullish on the S&P 500, highlighting its attractive price-earnings multiple of 15 (excluding the “Magnificent Seven” stocks like Apple and Tesla, which are down significantly). He also recommends Mercado Libre, dubbed the “Amazon of South America,” as a strong e-commerce play, especially with Argentina’s economic reforms as a tailwind.
John Tabacco, a 40-year market veteran and host of Newsmax’s Wise Guys, takes a more cautious stance. He believes Trump’s tariff strategy was “masterfully done” to expose China’s position, emphasizing that China needs the U.S. more, given the $400 billion trade imbalance. Tabacco warns of potential jolts if China dumps $200 billion in U.S. Treasury debt, which could spike interest rates and choke growth. He’s skeptical of the “Magnificent Seven,” predicting Trump may target them after addressing other priorities, and believes we’re emerging from a recession that began last year.
All three experts agree the tariffs could eventually spark a U.S. manufacturing revival, though challenges like higher wages and factory retrofitting will slow progress. Iuorio gives it a 70% chance of success if Trump can navigate the timeline, while Butowsky highlights the role of robotics in new factories. Tabacco sees private-public partnerships driving infrastructure growth, with “seedlings” of economic development sprouting in Trump’s second term.
Kneale wraps the segment on April 10, noting the Nasdaq’s 5% drop after a 12% rise the previous day, urging listeners to “grab the sides of the kayak” through this rough water. WBM Episode 122 is a must-listen for investors seeking clarity amid the chaos, available now on all major podcast platforms.
