Black Monday... what to do about falling markets.


Have you noticed that the markets keep falling? Well, before we panic, let's see why this is happening.


On April 2, Donald Trump announced reciprocal tariffs for the United States' trading partners.

Why did he do this? The United States needs to reduce its trade deficit and, at the same time, 
pressure its partners to renegotiate trade terms.


What did Donald Trump see? That its exports didn't cover its imports... So, then came the tariffs.


To summarize even further, if prices rise within the United States (remember that many companies, 
even though they are located in the US, import raw materials), inflation rises, 
and if wages remain stable or don't keep up with the price increase, purchasing power is lost.


If there's less domestic market growth due to the loss of purchasing power, companies will sell less...


And the market always anticipates this, and this is what happened. Given this scenario, capital began to 
sell its shares to avoid future losses, and that's what brings us to today.


We're still far from hitting rock bottom, so what do we do?


This isn't investment advice!


If you're in this for the long term (like me), hold on tight. We haven't seen anything like this since the pandemic.


But that's precisely the experience and the answer: whenever the market collapsed, it eventually recovered 
(according to JP Morgan, out of the last 19 crises, 18 of them recovered within two years).

Past performance is no guarantee of future performance, but we all know the potential for a US recovery.


In my case, I see this as a good time to buy and improve prices.


If you're short, the worst may be yet to come.