# China’s Tariffs: Creating Millionaire Opportunities in a Volatile Market
In a recent video analysis, financial expert Alex from Tickerol U breaks down how President Trump’s trade war with China is creating unprecedented investment opportunities amid market uncertainty. Despite the anxiety rattling global markets, Alex emphasizes that “millionaires are made during stock market downturns” – especially for those willing to be “greedy when others are fearful.”
## Understanding the Current Market Volatility
The S&P 500 recently experienced its third-best day in history (up nearly 10%) after Trump announced a 90-day pause on his latest round of tariffs. Similarly, the Nasdaq rocketed up 12% in a single day, marking its second-best day ever. However, these gains began erasing almost immediately.
Alex’s research revealed a fascinating pattern: all ten of the S&P 500’s best days historically occurred during major market crashes:
– During the 2008 global financial crisis
– March 2009 (the bottom of that crisis)
– During the 2020 pandemic crash
– Days after Black Monday in 1987
This pattern demonstrates why blindly “buying the dip” isn’t always a wise strategy.
## Why Markets Continue to Drop Despite Tariff Pause
Two primary factors are driving continued market decline:
1. **Partial Tariff Implementation**: While some tariffs were paused, Trump still increased the rate on Chinese goods to 145% and maintained a 10% universal tariff on other imports. China responded with 125% retaliatory tariffs on U.S. goods.
2. **Ongoing Uncertainty**: The 90-day pause isn’t enough time for companies to adjust supply chains, onshore jobs, or build U.S. factories. Companies must either absorb costs (hurting margins) or pass them to consumers (reducing demand).
## The Earnings Impact
The tariff situation creates a third problem around earnings guidance. Companies typically provide future expectations for revenues, earnings, and margins, but current uncertainty makes accurate forecasting nearly impossible. This will likely result in vague and conservative guidance in upcoming earnings calls.
## Investment Strategy During Market Fear
Alex uses the Fear and Greed Index as his primary indicator before making investment decisions. Currently, the index