In a recent update, President Trump has rescinded his tariff threats against China, expressing mutual interest in avoiding an economic downturn for both nations. The President’s statement indicates a collaborative approach rather than a hostile one. Meanwhile, casual retail investors and traders can breathe a sigh of relief, as the ongoing tensions in U.S.-China trade relations seem to be easing, keeping the TACO trade resilient.
A poster questions the current market panic over tariff news, drawing a comparison to past similar situations that didn’t cause such a stir. They’ve been cautiously holding onto low-risk assets like MMFs and gold since February, anticipating economic instability, high inflation, and falling interest rates. Despite their portfolio’s relatively modest size of £20k and being based in the UK, where dollar devaluation benefits gold more than stocks, they’ve chosen to take a calculated risk with their investments.
The original poster highlights a critical geopolitical issue concerning rare earth elements (REE), emphasizing China’s significant control over around 70% of global reserves. They argue that Western nations previously outsourced REE production to China due to cost and environmental concerns, which has now become a strategic liability as tensions with the U.S. escalate. The poster suggests that if President Trump imposes full tariffs on Chinese goods, including high-tech items reliant on rare earth metals like laptops and TVs, consumers could face drastic price increases. Furthermore, they caution that without access to REEs, crucial sectors such as data centers, electric vehicles, defense, and green energy may grind to a halt, underscoring the potential economic ramifications of ongoing trade disputes.
In response to President Trump’s threat of imposing 100% tariffs on Chinese imports, China has expressed readiness for a trade war. The country’s Ministry of Commerce accused the U.S. of a “double standard,” citing China’s recent export controls on rare earth minerals. This escalation in trade tensions could impact global markets, including those for retail investors and traders, as they navigate the potential ramifications on international commerce and supply chains.
US stock futures saw a significant rebound on Sunday night, with the Dow Jones Industrial Average, S&P 500, and Nasdaq-100 all rising by 0.7%, 0.8%, and 1.1% respectively. This upswing was in response to President Trump’s recent softened stance on China tariffs, as conveyed through his posts on Truth Social. His assurance that US-China relations “will all be fine” seemed to temper the aggressive tariff threats made earlier, thereby alleviating concerns of a burgeoning trade war and subsequent market drop that had erased about $2 trillion in US equity value.
The original poster ponders the potential bursting of the AI stock bubble and seeks advice on alternative assets for investment. They propose considering international stocks, precious metals, small/midcap companies, non-tech megacap firms, and bonds as potential alternatives to the heavily weighted tech sector in the US market. The query aims to spark a thoughtful conversation, emphasizing it’s not a reaction to recent market fluctuations but a genuine exploration of diversification strategies for casual investors or traders.
The original poster draws comparisons between the 2000 dot-com bubble and the current market trends, highlighting significant valuations in emerging sectors like quantum computing and eVTOL technology. Companies within these sectors, despite having minimal to no revenue, boast valuations comparable to or exceeding those of high-flying dot-com firms from two decades ago when adjusted for inflation. The poster suggests that while the current market bubble might not pose the same systemic risk due to its smaller relative size compared to the internet sector in 2000, valuation metrics reveal a striking parallel between the two eras.
The original poster questions the significance of Bitcoin’s limited supply cap of 21 million, emphasizing that most Bitcoin owners don’t self-custody their assets. Instead, they rely on third-party custodians who may not hold 100% of the Bitcoin they claim to manage. Drawing parallels with fractional reserve banking for traditional assets like stocks and gold, the poster suggests that the perceived scarcity of Bitcoin could be illusory if the market supply is effectively unlimited due to third-party custodian practices. This critique prompts retail investors or traders to reconsider the true ownership and scarcity of Bitcoin in light of these intermediary arrangements.
An individual has been utilizing an amalgamation of AI tools, Reddit insights, and online research to pinpoint high-potential investments in sectors like energy, tech, and emerging innovation. Their strategy focuses on generating asymmetric bets with clear catalysts and defined risk parameters. As of their latest update, notable gains have been made with Energy Fuels (+280.8%), Empire Metals (+170.6%), POET Technologies (+59%), Techgen Metals (+44%), NeuroOne Medical (+43%), and BrainChip (+20.1%). This approach, while successful in some cases, also includes a notable loss with Elite Pharma (-9.9%). The individual emphasizes this as an ongoing personal experiment and disclaims it as financial advice.
The post emphasizes the importance of conviction in one’s investment strategy. It advises that investors should align their portfolio with their beliefs, be it in tech, crypto, or a buy-and-hold approach. The original poster cautions against frequent allocation changes due to daily market fluctuations, suggesting such behavior may indicate an unsustainable investment strategy for casual retail investors or traders.
A Bloomberg article highlights that the ongoing US-China trade tensions could boost battery stocks, particularly those involving lithium due to China’s restrictions on lithium battery exports. As 65% of US grid-scale lithium-ion battery imports in 2025 originated from China, American battery companies like Dragonfly Energy are poised to fill the supply gap. The demand for energy storage is surging stateside due to increasing AI and data center electricity consumption, making battery components crucial. However, US manufacturers face challenges as China dominates anode (96%) and cathode (85%) production. The situation underscores the need for domestic innovation, as seen with Dragonfly Energy’s efforts to reduce reliance on Chinese supplies. Meanwhile, China aims to maintain its competitive edge in the battery industry, potentially influencing trade negotiations, especially given President Trump’s recent threats of additional tariffs following China’s export controls announcement.
The original poster is considering Lululemon (LULU) stock as potentially undervalued, currently trading at 11.4x Price-to-Earnings (P/E) and 10.4x Operating Cash Flow (OCF). Despite the negative impact of tariffs on the retail company, the poster acknowledges Lululemon’s robust margins and financial strength, suggesting that the stock could become an attractive buy when its current low valuation offsets these challenges.
The original poster emphasizes the value of paper trading before transitioning to live accounts, initially dismissing it as unnecessary but later realizing its significance after a challenging start with real money. Over nearly a year of paper trading, they honed their strategy in varying market conditions, developed patience, and built confidence in adhering to a plan. They strongly advocate for new traders to utilize paper accounts as a crucial step towards practicing disciplined trading without risking capital.
The original poster is considering diversifying their investment portfolio by including rare earth metals. They’ve identified several companies such as MP Materials, Energy Fuels, Lynas Rare Earths, Ucore Rare Metals, and Mkango Resources for potential investment. Given the high demand for technology and ongoing China-US tensions, they’re questioning if this could be a strategic move right now. Casual retail investors or traders might find this sector interesting due to its potential growth amid geopolitical factors influencing supply chains.
The original poster expresses confusion about the criticism surrounding the use of AI tools like ChatGPT for quick research on stocks, emphasizing its efficiency in gathering information swiftly. Despite acknowledging it shouldn’t be taken as absolute truth, they’ve faced backlash on platforms such as StockTwits. They seek an unbiased, rational opinion from the community regarding the utility of AI in casual retail investing or trading.