By Frank Gristina – Portfolio Manager, Acadia Wealth Advisors
Markets, Headlines, and AI Collide
On April 7, 2025, the Dow reversed nearly 2,500 points in a single session.
The spark? A false report claiming President Trump might delay tariffs was picked up by trading and/or news algorithms before humans had a chance to verify.
Within minutes, short positions were covered, and large-scale buying sent markets soaring. As the truth caught up, the rally faded, and markets ended flat.
This wasn’t about company performance, earnings reports, or economic data. It was about speed over understanding and a reminder of how fragile the market’s structure has become.
A “Yeah” Heard Round the Markets
The false headline originated from a Fox News interview with White House economic advisor Kevin Hassett. When asked if Trump might consider a 90-day tariff pause, Hassett responded:
“Yeah, you know, I think the President is going to decide what the President is going to decide.”
It wasn’t a policy announcement. It was just a vague, rhetorical reply. But in the age of algorithmic trading, nuance gets lost. AI systems that scan financial transcripts for tradeable cues may have interpreted that “yeah” as confirmation and fired off massive buy signals.
Major platforms like Reuters and CNBC initially echoed the story. Twitter accounts like Walter Bloomberg amplified it. The White House later confirmed it was incorrect. But by then, billions had already changed hands.
This Is Why We Don’t Trade Headlines
This episode wasn’t an outlier, it’s a symptom of a broader trend.
Market infrastructure now reacts faster than it reasons. Machines are programmed to act on signal, not context. And while that creates momentary dislocation, it also creates opportunity for those who are patient, prepared, and grounded.
That’s how we operate at Acadia. We don’t react to rumors. We don’t follow Twitter. We follow fundamentals.
The companies we invest in are real businesses with earnings, dividends, and long-term growth potential. They’re not priced based on speculation or soundbites. And when they get marked down by panic, we see it for what it is: a sale.
Where We Are: The Bigger Picture
President Trump’s tariff actions have dramatically reshaped the global economic landscape. These tariffs have triggered retaliatory responses from China but promises of negotiations from others. All this iscreating real uncertainty for exporters, manufacturers, and global supply chains. Markets are reflecting that tension.
But there’s an important distinction: uncertainty is not the same as risk.
As investors, we plan for volatility.
We expect dislocations. And when they come — especially in environments fueled by misinformation or overreaction — we rely on systems like G@RY to identify companies trading at attractive valuations and yields, backed by durable fundamentals.
This is the exact kind of environment where G@RY shines.
Fundamentals Don’t Panic
That’s the key message here. While headlines misfire and algorithms overcorrect, the fundamentals don’t panic.
• JPMorgan doesn’t lose its moat because of a misquote.
• Apple’s long-term value isn’t defined by an AI misread.
• Dividend yields don’t lie — especially when they hit historical highs in oversold conditions.
We added JPM and WMT last Thursday the April 3rd at a very handsome discount to previous prices, valuations and relative historical price/dividend. We did not get frustrated by Monday’s Wild Ride (April 7th) but simply discovered its causes and relied on our conviction in fundamentals and fair entry points.
While we may have been one day early, not catching the exact bottom, we are going to judge this purchase three, six, and nine months from now. And, we are not going to let headlines or market volatility rattle us in or out of these positions.
Final Thought
If all of this feels overwhelming, you’re not alone.
That’s why we’re here. Not just to manage your portfolio, but to help you make sense of what matters and what doesn’t.
We don’t build portfolios based on social media sentiment or political theater. We build them on strength, durability, and smart positioning, especially in unpredictable times like these.
Have questions? Let’s talk.