From Yahoo Finance: 2025-04-04 03:52:00

President Trump’s Liberation Day tariff push caused a worldwide market selloff, reminiscent of the Covid pandemic impact in 2020. The S&P 500 fell 5%, Nasdaq 6%, and Dow Jones Industrial Average 4%. Bond investor Bill Gross warned against buying the dip amid the turmoil.

Bill Gross, Pimco cofounder, advises investors to avoid the market bloodbath and wait for more stable investment opportunities. He believes there will be time to purchase bargains in the future.

Equities selloff following President Trump’s tariff announcement hit Asia, EU, and the U.S., with S&P 500 down 5% and Nasdaq 6%. JPMorgan analysts raise global recession risk to 60% from 40% days ago.

Gross predicts Trump won’t change his tariff stance, calling him a “macho male.” He advises against seeking deals due to market volatility and serious implications for the economy.

Gross suggests focusing on domestic stocks like AT&T, Verizon, and tobacco companies. He warns against buying overbought stocks and emphasizes the importance of patient investing.

Gross recommends holding onto cash like Warren Buffett, who’s selling equities and sitting on a $334 billion cash pile. Fund managers view trade war as the biggest market risk, anticipating stagflation.

Gross anticipates Trump claiming success with trade policies in a few weeks but doubts he’ll back off tariffs soon. He advises investors to stay cautious and consider holding onto cash during the uncertain market climate.

Read more: Bill Gross warns investors away from trying to ‘catch a falling knife’ amid global market carnage