My $5 Turbo Trade That Beat the Market During Trump’s Tariff Turmoil

The volatile period following Donald Trump’s reelection on November 6, 2024, presented a unique challenge for investors. Initially, the stock market soared on expectations of a pro-business administration, creating what was called the “Trump bump.”

However, this optimism was short-lived as tariffs began to create market turbulence. In this article, I’ll share how my strategic trade managed to outperform the broader market during this extreme volatility.

I recall the uncertainty that gripped Wall Street as trade policies began to shift. By examining the market conditions and identifying resilient sectors, I was able to navigate the turmoil and achieve significant gains.

Key Takeaways

• Understanding the impact of tariffs on the market
• Identifying resilient sectors during times of trade uncertainty
• Strategic trade decisions that outperformed the broader market
• Navigating market volatility with a contrarian approach
• Achieving significant gains despite tariffs and market turbulence

The Market Landscape During Trump’s Second Term

The market landscape during Trump’s second term was shaped by hopes of a pro-business agenda and apprehensions about escalating tariffs. After the S&P500 gained 23% across 2024 and 24% across 2023, investors were unsure whether the good times could keep rolling.

Trump’s Reelection and Initial Market Response

The stock market rallied on the first day of trading during Trump’s presidency, despite his announcement that his administration would levy a 25% tariff on Mexico and Canada starting February 1. This initial reaction reflected investor confidence in Trump’s business background.

The “Trump Bump” Phenomenon

The “Trump Bump” represented the initial market surge following Trump’s election victory, driven by expectations of pro-business policies and continued economic expansion. Key aspects of this phenomenon include:

• Investors betting on pro-business policies driving economic growth.
• Market enthusiasm persisting despite initial tariff announcements.
• Investor confidence in Trump’s business acumen and strategic trade policies.

Understanding Trump’s Tariff Policies

Understanding the nuances of Trump’s tariff policies is essential for grasping their effect on the market. Trump’s approach to trade was characterized by a significant departure from traditional trade policies, embracing a more protectionist stance.

The First Wave of Tariffs

The initial imposition of tariffs under Trump was met with a mixed response from the market. Tariffs were seen as a tool to renegotiate trade agreements and protect American industries. The first wave targeted specific countries and products, aiming to address perceived trade imbalances.

Escalation to “Liberation Day” Tariffs

On April 2, 2025, Trump unveiled his “Liberation Day” tariffs, marking a dramatic escalation in his trade policy. The announcement shocked market participants with its unprecedented scope and scale. The chart presented during the White House ceremony depicted massive tariff rates on dozens of countries, leading to a sharp decline in stock futures.

The escalation to “Liberation Day” tariffs transformed what was initially viewed as targeted trade negotiations into a full-scale global trade war. This shift had far-reaching implications for markets and the economy, as investors realized that these tariffs were not merely negotiating tactics but represented a fundamental shift in U.S. trade policy.

Trump Stock Market Impact: Volatility and Uncertainty

The introduction of tariffs under Trump’s presidency was met with a market reaction characterized by increased volatility and a decline in stocks. This period was marked by significant fluctuations in the market, as investors reacted to the uncertainty surrounding trade policies.

Market Corrections and Bear Territory

The S&P500 slumped to its lowest level of the year as fear on Wall Street spiked. The market experienced a correction, with the S&P500 dropping to its lowest point during Trump’s first 100 days in office. Market fear indicators, such as CNN’s Fear and Greed Index, reached extreme levels, highlighting the uncertainty prevalent in the market.

Global Market Reactions

Global markets experienced synchronized declines following Trump’s tariff announcements. US stock futures plunged, with Dow futures dropping more than 1,100 points. Markets in Asia also tumbled, reflecting the global nature of the market reaction. The world economy felt the ripple effects of U.S. trade policy decisions, leading to a decline in international markets heavily dependent on trade with the U.S.

Why Markets Reacted Negatively to Tariffs

Trump’s tariff policies sparked a negative market response, largely due to the potential for increased prices and decreased consumer confidence. The introduction of tariffs led to concerns about their impact on the broader economy.

The tariffs imposed during Trump’s presidency had far-reaching effects, including supply chain disruptions and increased costs for consumers.

Supply Chain Disruptions

Tariffs disrupted global supply chains, leading to increased costs and reduced efficiency for businesses. This disruption was a significant factor in the negative market reaction, as it affected the production and distribution of goods.

Inflation Concerns and Consumer Impact

The tariffs also raised concerns about inflation, as the increased costs were often passed on to consumers through higher prices. This led to a decline in consumer sentiment, which plunged to a reading of 50.8, the second-lowest on record. The combination of higher prices and weakening consumer confidence raised serious concerns about a potential recession, further dampening market sentiment.

My Turbo Trade Strategy During Market Turbulence

The key to navigating the turbulent market during Trump’s tariffs lay in a disciplined turbo trade strategy. This approach allowed me to capitalize on the volatility and uncertainty that characterized the period.

Identifying Resilient Sectors

To successfully navigate the turbulent market, it was crucial to identify sectors that were resilient to the impacts of tariffs. Companies with strong domestic revenue sources and minimal exposure to international supply chains were particularly appealing. The healthcare sector, for instance, demonstrated robustness due to the essential nature of its services and products.

Resilient sectors were those that could maintain their growth trajectory despite the challenging economic environment. This was often due to their ability to operate with minimal disruption from international trade tensions.

The $5 Stock Selection Criteria

My $5 stock selection criteria were designed to pinpoint undervalued companies trading at around $5 per share that could withstand tariff-related market turbulence. Key factors included financial strength, with a focus on companies having healthy balance sheets, positive cash flow, and manageable debt levels. Additionally, I sought companies with demonstrated revenue growth, even in a slowing economy.

• Companies with minimal international supply chain exposure were preferred.
• Essential products or services that remained in demand regardless of economic conditions were considered.
• Growth potential was a critical factor, with a focus on companies showing resilience in revenue growth.

As noted by a financial expert, “The ability to adapt to changing market conditions is crucial for investment success.” The $5 price point was strategic, allowing for significant position sizing while limiting downside risk.

Intuitive Surgical: A Case Study in Tariff Resilience

Amidst the Trump administration’s tariff policies, Intuitive Surgical demonstrated remarkable resilience in its business operations. This medical device specialist’s ability to navigate the challenges posed by tariffs offers valuable insights into its business model and market position.

Company Background and Performance

Intuitive Surgical is a leading manufacturer of robotic surgical systems. The company has shown strong performance in the market, driven by its innovative products and robust business strategy. In 2025, it projected adjusted operating expenses to grow between 10% and 14%, compared to 10% in the previous year.

How Tariffs Affected Their Business Model

The imposition of tariffs had a mixed impact on Intuitive Surgical’s operations. While 98% of its robotic systems are manufactured in the U.S., 70% of its endoscopes are made in Europe, and 80% of its instruments and accessories come from Mexico. The company estimated that tariffs would impact its revenue by approximately 1.7%. Despite this, Intuitive Surgical’s gross profit margin was expected to narrow to 65-66.5% from 69.1% in 2024.

Trump Media & Technology Group: An Alternative Play

Trump Media & Technology Group presented a unique investment play during the tariff turmoil. As the market navigated the complexities of Trump’s policies, this company emerged as an alternative for investors looking to diversify their portfolios.

DJT Stock Performance Analysis

The DJT stock experienced significant fluctuations, largely influenced by announcements related to its strategic partnerships. A major catalyst was the partnership with Yorkville America Digital and Crypto.com to launch exchange-traded funds (ETFs) and exchange-traded products (ETPs) under the Truth.Fi brand, focusing on trading cryptocurrencies.

Strategic Partnerships and Growth Potential

This strategic move marked a significant diversification for the company into financial services and digital assets, potentially opening new revenue streams. The partnership leveraged TMTG’s brand power, Yorkville’s financial expertise, and Crypto.com’s technological infrastructure, creating a capital-efficient business model with high margin potential for new products. Over the year, this pivot demonstrated the potential for creating shareholder value even in turbulent market conditions.

The Federal Reserve’s Role in Market Stabilization

The Federal Reserve played a crucial role in stabilizing the market during Trump’s tariff turmoil. As trade tensions escalated, the Fed’s actions were closely watched by investors and market analysts.

The Fed’s independence is a cornerstone of its credibility, and Jerome Powell’s warnings on tariffs highlighted the potential economic risks associated with protectionist policies.

Jerome Powell’s Warning on Tariffs

Jerome Powell, as the Fed Chair, issued warnings about the potential negative impacts of Trump’s tariffs on the economy. His statements underscored the uncertainty and volatility tariffs introduced into the financial markets.

The Fed Chair’s cautionary words were a response to the escalating trade tensions and their potential to disrupt economic growth.

Trump’s Reaction to Fed Policies

Trump’s reaction to Powell’s warnings was swift and confrontational. The president took to social media to criticize the Fed Chair for not cutting interest rates fast enough, sparking concerns about the Fed’s independence.

This public criticism represented a significant break from the norm, creating additional uncertainty in the markets. Trump’s comments led to a drop in the U.S. dollar index, reflecting international concerns about U.S. monetary policy.

Safe Haven Assets During Trade Wars

During times of trade wars, investors often seek safe haven assets to protect their portfolios. This shift is driven by the uncertainty and volatility that trade wars introduce into the market.

Gold’s Record Performance

Gold has historically been a popular safe haven. It maintained its value during the trade war turbulence, reflecting its reliability over many years. Gold’s performance was steady, making it a preferred choice for investors seeking stability in uncertain times.

Bitcoin and Cryptocurrency Movements

world’s largest cryptocurrency, experienced extreme volatility during this period. Initially, it surged above $100,000 in December 2024, fueled by optimism about a “Trump bump.” However, by February 2025, it fell below $80,000 as market sentiment shifted. This volatility highlights the unpredictable nature of trading in cryptocurrencies during a single year.

How My $5 Turbo Trade Outperformed the Broader Market

Trump’s tariffs led to market uncertainty, but a well-crafted trade strategy, like my $5 Turbo Trade, can still yield substantial returns. During this period, the major market indexes experienced significant declines.

Entry and Exit Strategy

The success of my $5 Turbo Trade can be attributed to a well-planned entry and exit strategy. By identifying companies with minimal tariff exposure, the trade was positioned to capitalize on their resilience.

Percentage Gains Compared to Major Indexes

The outperformance of my $5 Turbo Trade is evident when comparing its returns to those of the major indexes. The following table summarizes the performance:

Conclusion: Lessons for Investors in Politically Volatile Markets

The turbulent market during Trump’s tariff policies provides valuable insights for investors. The market experienced extreme volatility, particularly after the announcement of “Liberation Day” tariffs, with the S&P500 posting its worst quarterly performance since 2022. However, some stocks and sectors showed resilience, offering opportunities for strategic investors.

Key lessons include maintaining emotional discipline during market panic, understanding how policy changes affect different sectors, and being tactically opportunistic during short-term volatility. The $5 Turbo Trade strategy demonstrated that even during periods of extreme market stress, opportunities exist for investors who can think independently and act decisively.