💰 Maniac Minute: How To Profit From A Pullback

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Good morning, Maniacs!

Markets just suffered their worst week since September, with the Nasdaq sliding into correction territory and the S&P 500 shedding 3.1%. Powell slammed the door on rate-cut hopes, while Trump’s tariff threats kept investors on edge.

If you’re feeling the whiplash, you’re not alone. But keeping your cool is half the battle—and we’ve got six strategies to help you navigate the chaos.

Plus, a new lifestyle trend is picking up steam, and let’s just say… happy hour is looking a little different these days.

Let’s dive in!

Market Recap 📈

Every day last week, the S&P 500 swung by at least 1%—usually to the downside—as Trump’s evolving tariff plans kept investors on edge.

Stocks wrapped up their worst week since September, with the S&P 500 falling 3.1% and now down 1.9% YTD. The Nasdaq wasn’t spared either, tumbling over 10% from its highs and officially entering correction territory.

An underwhelming February jobs report sent Treasury yields sliding as traders bet on Fed rate cuts later this year. But Jerome Powell quickly shut that down, stating, “We do not need to be in a hurry.”

With $7 trillion in debt to refinance this year, Trump and Treasury Secretary Scott Bessent might see things differently.

Their push to lower oil prices and drive down the 10-year Treasury yield is meant to ease budget pressures—but it could come at the expense of stock prices in the short run.

And if Trump’s recent comment—“I’m not even looking at the market”—is any indication, volatility isn’t just sticking around. It might even be part of the plan.

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Winners & Losers 🚀

Tariff fears, AI jitters, and an EV selloff kept markets on edge last week. But not every stock got caught in the downturn—a few unexpected winners bucked the trend and delivered gains.

Winners

1. Okta ($OKTA) – Market Cap: $19.5B (+24.3%)

Okta’s glow-up just hit a new milestone. After a rough 2023 marred by security breaches, the cybersecurity firm is back in Wall Street’s good graces—crushing earnings, beating revenue expectations, and issuing bullish guidance. Shares have now soared 43% YTD.

The biggest flex? Profitability. OKTA ( ▲ 1.66% ) swung from a $355 million net loss a year ago to a $28 million net income over the last 12 months.

2. BJ’s Wholesale Club ($BJ) – Market Cap: $15.3B (+14.1%)

BJ’s just hit an all-time high after delivering strong earnings and a 25% surge in e-commerce sales. Memberships hit record levels, driving an 8% boost in fee income—proving that shoppers are still looking for deals.

Looking ahead, the BJ ( ▼ 2.67% ) franchise is expanding aggressively with plans to open 25-30 new locations, including its first foray into Texas. Watch out, Costco.

Losers

1. Tesla ($TSLA) – Market Cap: $844.9B (-10.3%)

Tesla’s post-election rally is officially in the rearview mirror. Shares have now skidded nearly 50% from their December highs as EV demand concerns, Musk’s political baggage, and tariffs weigh on investor sentiment.

But longtime TSLA ( ▲ 7.59% ) bull Dan Ives isn’t sweating it—calling this a “gut check moment” for investors. He still sees a bright future, arguing that Trump's election was “the best thing that ever happened to Musk and Tesla,” setting the stage for a deregulatory environment ripe for innovation.

2. Nvidia ($NVDA) – Market Cap: $2.75T (-9.8%)

Is the AI chip rally losing steam? A weak forecast from Marvell Technology sent shockwaves through the entire semiconductor sector, sparking fears that AI-driven chip demand may not be bottomless.

Analysts argue the NVDA ( ▲ 6.43% ) selloff has more to do with macro fears—tariffs, trade policy, and general AI fatigue—than anything wrong with the business itself. But that hasn’t stopped the bleeding. Since peaking in January, Nvidia’s market cap has shed nearly $1 trillion.

How To Stay Cool During A Selloff 🫨

Stock market corrections can feel like a rollercoaster ride with no seatbelt. One moment, everything’s climbing—then suddenly, red charts, scary headlines, and social media panic.

But here’s the reality: market downturns are not just common, they’re expected.

The key to long-term success? Staying calm, sticking to your plan, and not letting emotions dictate your investing strategy.

1. Don’t Panic! Volatility Is The Price Of Admission

On average, U.S. stocks dip 5% three times a year, correct 10% annually, and decline 15% every three years. But here’s the good news: the market has a 100% track record of recovering from corrections.

2. Build An Anxiety-Free Portfolio

If market swings keep you up at night, it’s a sign your portfolio may be too aggressive. Consider rebalancing toward a more defensive stance—more bonds, fewer stocks. While you may sacrifice some upside, you’ll also avoid panic-selling when volatility spikes.

3. Forget Timing the Market—Time In The Market Wins

Trying to sidestep downturns is a losing game. Even if you successfully exit before a drop, you ALSO have to time your re-entry perfectly—which rarely happens.

In fact, missing just 50 key days over the past 35 years—less than 1% of total trading days—could have reduced your returns by 92%. Gains are highly concentrated, and if you're sitting on the sidelines, you risk missing them.

4. Keep Dollar-Cost Averaging

Long-term data shows that buying during downturns leads to stronger long-term returns. While you shouldn’t wait for a recession to invest (you might wait too long), you also shouldn’t stop investing during downturns (a common mistake).

A disciplined approach like dollar-cost averaging ensures you keep buying at regular intervals, setting yourself up for gains when the market rebounds.

5. Maintain A Cash Cushion

An emergency fund is your best defense against being forced to sell assets during a correction. Keeping three to six months of expenses in cash ensures you can weather downturns without tapping your investments.

6. Zoom Out

Daily market swings are just noise. If you’re stressing over red days, stop checking your portfolio and focus on your long-term plan.

While any given week only ends in the green 57% of the time, a full year ends green 75% of the time. A decade? 94%. And a 20-year period? 100% positive returns.

Market dips may feel painful in the moment, but they’ve always been temporary setbacks. Stay invested, stay disciplined, and let time do the heavy lifting.

Worth The Read 📚

📉 Markets may have overreacted this week. Stocks have erased post-election gains, but some analysts argue the selloff has gone too far if Trump’s tax cuts and deregulation materialize.

📊 These 14 stocks could thrive despite tariffs. Healthcare, domestic manufacturers, and select retailers can pass on costs to consumers—positioning them as potential winners during a trade war.

🛡️ Citigroup says defense stocks are a buy as geopolitical tensions rise. Even with Pentagon budget cuts on the table, analysts argue that demand for military tech, cybersecurity, and defense contractors isn’t slowing anytime soon.

💣 U.S. national debt just hit $36.2T, and experts warn it’s climbing at an unsustainable pace. Interest payments alone now exceed defense spending.

🏦 Traders are now betting on a June rate cut. Whether Powell agrees is another question.

💵 A record 4.8% of 401(k) holders took hardship withdrawals last year, the highest ever. More Americans are tapping retirement savings to avoid foreclosure, cover medical bills, or just stay afloat.

🌿 Alcohol is out, psychedelics are in. The ‘Cali sober’ lifestyle—where drinking is swapped for cannabis, mushrooms, and ketamine—is gaining traction. Some claim it enhances mood without the hangover, while others warn of untested long-term effects.

The Week Ahead 🔍

As earnings season winds down, inflation and consumer sentiment take the spotlight—along with whatever surprises Washington throws our way.

Monday

• Earnings from Oracle

Tuesday

• Earnings from Dick’s and Kohl’s

• January JOLTs Job Openings (est. 7.5M)

Wednesday

• Earnings from Adobe, Lennar, Williams-Sonoma, and American Eagle

• February Consumer Price Index (est. 0.3% MoM, 2.9% YoY)

• February Core Consumer Price Index (est. 0.3% MoM, 3.2% YoY)

Thursday

• Earnings from Dollar General, Ulta Beauty, and DocuSign

• February Producer Price Index (est. 0.3% MoM, 3.4% YoY)

Friday

• March Consumer Sentiment (preliminary est. 64.0)

That’s a wrap! See you next Monday with all the market insights and money tips you need to stay ahead.

Keep stacking,
The Money Maniac 💸

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DISCLAIMER: The information provided in this newsletter is for informational purposes only and should not be construed as financial advice or a solicitation to buy or sell any assets. All opinions expressed are those of the author and are subject to change without notice. Please do your own research or consult with a licensed professional before making any investment decisions.