There’s no hiding the fact that the S&P 500 index has been on a wild ride for the past couple of weeks. Volatility has popped with President Trump's rollout of new trade tariffs on most countries doing business with the United States. Since the stock market reflects future GDP expectations, and tariffs certainly create difficulty in forecasting future GDP, it makes sense to expect further volatility in the coming months and quarters.
That being said, there are still fundamental arguments to be made for safety in the stock market, as long as this safety comes in the form of price action driven by underlying business models. These business models should be focused on predictable and stable cash flows so that investors can have a chance of not only keeping their potential investments safe but also compounding their wealth once the uncertainty is removed from the equation.
