Stock Market Bubbles, Tariffs, and Smart Investment Strategies
NVIDIA’s $4T Market Cap Fuels AI Bubble Collapse Concerns.
Americans have plenty to celebrate on the recent 4th of July, and with President Trump in the Oval Office for less than six months, the winning continues.
Some of the Trump administration’s accomplishments by day 169 include: the elimination of Biden’s open border policies, ending Iran’s nuclear threat, the passing of Trump’s big, beautiful bill, and gasoline prices at their lowest in over five years—all of which mean more money in voters’ pockets.
President Trump has shown the world that America is back, and peace might only be achieved through a clear show of power, which paves the way to prosperity. While we have many reasons to be optimistic, we must move forward cautiously.
The US stock market in the first half of 2025 experienced the most extreme volatility in history. The seven major technology stocks lost around $6 trillion in market capitalization, only to recover most of those losses in just two months. As the market cap of these stocks approaches $19 trillion, they near the GDP of the entire European Union’s twenty-eight member states. The combined value of these seven companies accounts for more than 35% of the total valuation of all other stocks traded in US markets.
My decades of experience in the global financial markets lead me to warn: the kind of volatility we’re seeing in stock markets isn’t normal; it’s dangerous. In fact, despite what most media experts say, what we are witnessing is ’irrational exuberance’ – a giant bubble. Bubbles never end well; they always burst and end very badly!
The stocks listed below are likely to experience the most significant declines in share price and market capitalisation during the second half of 2025.
BUBBLE TROUBLE
1. Tesla: $1 Trillion
2. Nvidia: $4 Trillion (A new record - the most valuable company in US history)
3. META: $1.9 Trillion
4. Apple: $3.3 Trillion
5. Microsoft: $3.7 Trillion
Among precious metals, gold has been the underperformer, while platinum and silver prices have risen – all a buy-on-dips! Copper prices hit record highs in London yesterday, trading at $5.77 per pound. Crude oil prices have stayed nearly 10% higher over the past 30 days, and the 10-year note yields have remained stubbornly high, around 4.38%.
Tariffs: a carrot-and-stick negotiating tool to stop other countries from taking advantage of the USA.
This week, President Trump sent out tariff letters demanding new trade deals with the following countries by August 1st, 2025:
Japan – 25%
South Korea – 25%
Brunei – 25%
Moldova – 25%
Tunisia – 25%
Malaysia – 25%
Kazakhstan – 25%
South Africa – 30%
Algeria – 30%
Bosnia and Herzegovina – 30%
Iraq – 30%
Libya – 30%
Indonesia – 32%
Bangladesh – 35%
Serbia – 35%
Cambodia – 36%
Thailand – 36%
Laos – 40%
Myanmar – 40%
Japan, the world’s fifth-largest economy, is under intense pressure to secure a U.S. trade agreement before the July 20, 2025, Upper House elections, as Prime Minister Shigeru Ishiba’s Liberal Democratic Party (LDP) faces voter backlash over weak economic growth and a 5% yen decline against the USD since April 2025. A deal could boost Ishiba’s credibility, but persistent inflation and U.S. tariff threats heighten risks of further yen depreciation, making energy and commodities attractive hedges for investors.
In closing, Stocks are overpriced and bubbling—next week’s inflation data may spark a sharp downward correction. Secure profits, move to cash, and gear up for the second half of 2025. Trades in energy, commodities, and foreign exchange markets will continue to outperform equities, offering bold investors substantial returns. Don’t wait—position now to thrive in the coming downturn.