First, I only buy stocks in the US during recessions and I know the sector I focus on. That sector is the first to be “bailed out” as the government relaxes all known rules to make the industry profitable, so that other sectors will come along. You can never go wrong, as for more than 50 years, all US governments have used one tool to fight recession, and that sector has always benefitted.
In Dec 2024, I sold all my positions after Trump returned. I am a Democrat and always think Reublications will find ways to crash the economy with a recession, natural luck, big tax cuts and the typical. So, as I write, I have zero US stocks. I hope we do not have a recession, but if it does happen, I will be greedy to bounce.
But as everything happens in this young Trump 2.0 Presidency, one person I do not understand anymore is Elon Musk. He sells a product named Tesla which mainly the liberals in America and Europe buy. But he goes after them daily. Does he think anyone in Alabama, West Virginia, etc cares to drive a Tesla? Without CA, MA, NY, MD, etc there may not be Tesla today. How? Those states offer generous tax rebates for EV cars and they fueled Tesla ascension as the only major EV producer in the US. California offered EV tax credits before the US government. In other words, CA gave Tesla “free” cash as it shaped buying decisions.
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But Musk seems to always fight with these customers and their leaders. Get me right: when I see an own-goal, I know one even before the referee calls. You see, what does this village boy know when billionaires are playing their games? You are correct: I do not understand how a man who owns Tesla will always fight with blue states. Sure, Trump wants to buy a new Tesla as the company’s valuation takes a heat: “President Donald Trump has pledged to buy a new Tesla vehicle to show his support for Elon Musk, as the electric carmaker struggles with a stock market crash, declining sales, and intensifying protests.”. A presidential buy could do the magic. Good luck, Elon.
After soaring for years, Tesla’s stock has tumbled over 50% from its recent highs, breaking away from the so-called “Musk trade” that’s lifted the billionaire’s other companies. While investors appear to be buying Elon Musk’s vision of robotaxis and artificial intelligence, analysts say Tesla shareholders are concerned about Musk “being spread too thin,” given his focus on cutting government spending, along with growing stigma around the brand. Tesla’s profits have plunged in several countries amid increased competition, particularly in China.
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