President Trump's tariffs have sent the equity markets into a tailspin. But RSM chief economist Joe Brusuelas is warning investors that the situation reminds him of late 2007, early 2008, when hedge funds started to implode. Hear his reasons and what Epistrophy Capital Research Chief Market Strategist Cory Johnson has to say in the video above.
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You know, I know it's fanciful to draw parallels to the early pandemic, but I'm going to pull rank in age here. No. What this feels like is 2000 late 2007, early 20008, when the hedge funds started to blow up in housing. Because what we're seeing is the systemic risk is it before the banks went. That's right. What we're seeing here is the mag 7 in Big Tech, and it just feels like we got a lot more ways to go. Remember, we did not get through that point until the backstop was put in. Here's the thing. Someone's going to have to come in and backstop this at one point for it to stop, whether it's Warren Buffett, or whether somebody's going to find an off-ramp over at the White House. One of those two things going to happen.
So commentary from the White House, a big buyer saying I'm buying, Yep. which probably isn't going to happen. Yeah. Um, someone in the White House who's got a view different than the president's. That's right. There isn't anyone in the White House who has a view different than the president's.
Well, I think they don't I don't agree with that. I think they do, but there's someone's going to have to go fall on a sword and take the abuse from the president to tell them, President, it's time to take the off ramp. There's going to be burgers on the wall this weekend. There there is going to be Yeah. Joe, just quickly on that point, so is the grossing affair characterization of what this market feels like? Just lots of taps on the shoulders, say, hey, you got to get out of this. You got to I don't care. You get out of it. Get out of it. Yeah, you need right now is about preservation of capital. When you get a vote of no confidence by the market in a major government policy, it needs that that need condition needs to come to an end because no one's going to win if it continues.
But this isn't like when the market tanked in the face of a government shutdown and I agree. It is not. That was a one day thing. Yeah. And that that looked like the market saying, we're going to show you this is a bad idea. And and and the White House turned it around. That's not this. This is something else. Well, we're going to have to figure out what this is. Well, I mean, yeah, what I hear you guys saying is like, no no one out there right now has a good reason to buy or buy more or say, I want to I want to get longer or whatever.
There's no reason. Look, this is not the great rotation. What people were talking about earlier this morning. No, this is something else.