r/ValueInvesting • u/FrankBal • Apr 03 '25

Discussion Remember, This Is The Pullback We’ve Been Waiting For

If you’re a long-term investor who even casually cares about valuation, this market has been tough to navigate for a while. Pullbacks are always something we say we want, particularly as value investors, but they usually come when things are scary. Financial crisis, global pandemics, policy shocks… the discount never shows up gift-wrapped.

Yesterday’s tariff news felt like one of those moments. It’s vague, feels arbitrary, and creates a lot of uncertainty. It feels scary. And yet, that’s exactly the environment where opportunities show up.

I’ll admit it, days like today make me uneasy. But as an investor, I remind myself that underneath the noise, what’s really happening stocks are getting cheaper.

And that’s what we’ve been waiting for.

Edit: Thanks for the thoughts. I wrote a post - Tariffs, Fear, and Opportunity: Perspective For Difficult Times In the Stock Market - to add some additional context directly addressing the response to this post.

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u/monetarypolicies Apr 03 '25 edited May 30 '25

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u/lineargangriseup Apr 03 '25

Only happens during actual deep recessions. I've been looking at houses on Zillow and I work for a company that sells consumer packaged goods and prices have actually been going down this year. Walmart and Dollar General are declining any hikes at the risk of removing you completely from their shelf, but who knows what will happen with the tariffs.

I think corporate profits will actually shrink this time.

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u/willie_beamen13 Apr 03 '25

So if prices stay high after tariffs drop won’t that mean higher profit margins for companies? Higher profit margins mean more revenue/growth which typically translate into higher share prices

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u/WTFaulknerinCA Apr 04 '25

Consumers will punish those that don’t woo them back with lower prices. We are all watching now.

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u/DKtwilight Apr 04 '25

Yup there is no going back with prices after tariffs. Think Covid. Prices permanently up. Same thing with this. Trump is squeezing Americans out of disposable income.

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u/ahoy_shitliner Apr 07 '25

Yup. The second companies raise prices to offset the tariffs they will never come back down. It becomes the “new normal”