Part 3/7:
As investors grapple with the current scenario, there are two primary scenarios to consider. The first suggests that the tariffs could lead to negotiations, thereby mitigating the negative impact on the market. The second, more concerning scenario, indicates that other countries may resist negotiating, leading to a stalemate that further destabilizes the global economy.
Historical Context: Learning from Past Crashes
Historical parallels provide valuable insights for navigating the current situation. For instance, the stock market crash of 1907, which followed the San Francisco earthquake, resulted in a 50% decline due to frantic withdrawals spurred by heavy insurance payouts. However, within four years, the market rebounded, surging by 193%.