Sevens Report Logo

The market may react with a “sell the fact” scenario

The market may react with a “sell the fact” scenario: Tom Essaye Quoted in GuruFocus


Trade Uncertainty Looms Over S&P 500 Despite Recent Gains

Tom Essaye, founder of Sevens Report Research, noted that the Trump administration has significantly weakened the April 2 tariff statement, delaying implementation and exempting key import categories such as chips, electronics, pharmaceuticals, and automobiles. Although the market has recovered losses post “Liberation Day,” the S&P 500 is still down 3.9% for the year despite a nine-day rally, the longest since November 2004.

Essaye warns that when a trade agreement is finally announced, the market may react with a “sell the fact” scenario. Although trade tensions appear to be easing, new tariffs remain higher than January levels, posing growth headwinds.

Essaye suggests shifting to defensive sectors like utilities, consumer staples, and healthcare for risk mitigation. He also recommends diversified investments through the Invesco S&P 500 Equal Weight ETF (RSP) and favors low volatility funds like iShares MSCI USA Min Vol Factor ETF (USMV) and high-quality stock funds (QUAL).

Also, click here to view the full article featured on MSN GuruFocus, published on May 5th, 2025. However, to see the Sevens Report’s full comments on the current market environment sign up here.


If you want research that comes with no long term commitment, yet provides independent, value added, plain English analysis of complex macro topics, then begin your Sevens Report subscription today by clicking here.

To strengthen your market knowledge take a free trial of The Sevens Report.


Join hundreds of advisors from huge brokerage firms like Morgan Stanley, Merrill Lynch, Wells Fargo Advisors, Raymond James, and more! To start your quarterly subscription and see how The Sevens Report can help you grow your business, click here.

Tags: , , , , , , , , , , , ,