Today's Cheddlines You Need2Know

• Think twice before bailing on the stock market

• Can you ever have too much Springsteen?

• Senate Confirms Dr. Oz to Lead Medicare Services

• Trump tariffs push is a race against time

• Bill Gates reflects on a 50-year-old computer code

—Matt Davis, Need2Know Chedditor

Think twice before bailing on the stock market

In the face of tumultuous stock market conditions, financial advisers urge investors to consider the historical resilience of stocks before making hasty decisions to sell. The S&P 500 $SPX ( ▲ 1.81% )  has witnessed significant drops, losing over 16% since reaching an all-time high in February, largely due to uncertainties surrounding President Trump’s tariff policies. It’s fueled fears and influenced market dynamics, but historical trends suggest a recovery over time.

“Data has shown, historically, that no one can time the market,” said Odysseas Papadimitriou, CEO of WalletHub. “No one can consistently figure out the best time to buy and sell.”

Financial experts recommend maintaining a diversified investment portfolio to mitigate risks and to avoid panic selling, which solidifies losses and removes the potential for future recovery gains. They highlight that stocks generally yield greater long-term returns compared to other investments, despite their volatility. Regular downturns, including those exceeding 10%, have periodically occurred, serving as natural market corrections against excessive optimism.

For newer investors attracted by easy-to-use trading platforms, experts advise staying the course, focusing on long-term goals, and perhaps seeking professional advice. Older investors nearing retirement are reminded of the potential longevity of their post-work years, suggesting a continued but cautious approach to stock investments. Ultimately, no one can predict how long market downturns will last, emphasizing the importance of strategic, informed decision-making rather than reactive moves.

Can you ever have too much Springsteen?

Even those who might answer “no” are going to be tested by this news: The boss has announced the upcoming release of "Tracks II: The Lost Albums," a box set featuring seven albums of previously unreleased music, totaling 83 songs recorded over four decades.

Set to release on June 27, it includes an unreleased 2018 album titled "Perfect World," from which Springsteen has already shared a song, "Rain in the River."

This collection serves as a sequel to his 1998 release "Tracks" and offers a glimpse into different periods of his career with albums like "Faithless," a soundtrack for an unproduced film, and "Streets of Philadelphia Sessions," related to his Academy Award-winning song. The set also explores various genres with albums such as "Somewhere North of Nashville," a country-themed collection, and "Twilight Hours," an orchestral noir-inspired work. Additionally, "LA Garage Sessions '83" provides a look into Springsteen's songwriting process between his albums "Nebraska" and "Born in the U.S.A."

This release is part of Springsteen's broader reflection on his career, including his 2016 memoir and ongoing Broadway residency. A Springsteen biopic, "Deliver Me from Nowhere," is also on the horizon for this year.

Don’t worry; He has no plans to die in the near future…that we know of.

From @cheddar

Social media post of the day

Senate Confirms Dr. Oz to Lead Medicare Services

Dr. Mehmet Oz, previously a heart surgeon and TV personality, was confirmed last week as the new administrator for the Centers for Medicare and Medicaid Services (CMS) by a 53-45 Senate vote.

Oz, at 64, now oversees major health insurance programs impacting roughly half the United States, including Medicare, Medicaid, and Affordable Care Act coverage. He steps into the role just as congress mulls over potential Medicaid cuts.

Oz has proposed integrating AI and improving rural health services. He also expressed support for work requirements for Medicaid recipients, while suggesting bureaucracy should not hinder enrollment.

With his medical background from Columbia University, Oz noted Medicaid's low compensation rates deter physicians. As CMS chief, he faces challenges including staffing reductions, with about 300 CMS roles expected to be eliminated under Health Secretary Robert F. Kennedy, Jr.

Should You Check Your 401(k) Today?

👎

(only if you’re feeling masochistic)

Trump tariffs push is a race against time

President Donald Trump’s recent imposition of extensive tariffs reverses a long-standing trend of lowering trade barriers globally, potentially escalating costs for American consumers and slowing the U.S. economy. However, there’s a catch: If voters turn against the tariffs, that could mean they run out of time to achieve their stated goals of returning manufacturing to America.

The tariffs, which include a universal 10% rate and significantly higher tariffs on approximately 60 countries, could increase average household expenses by $3,800 annually, contributing to an inflation rate that might exceed 4% this year. This economic strategy, according to the administration, aims to compel other nations to open their markets to more U.S. exports and might encourage companies to relocate production back to the United States to avoid the increased tariffs.

But. The potential backlash from American voters is a significant concern for the Trump administration. If the tariffs lead to noticeable price rises and job losses, public support could wane, making it challenging to sustain the tariffs long enough to influence corporate decisions about manufacturing locations. So, it’s chicken and egg. You know what they say about making omelets!

On the stock market front, the S&P 500 index continued to fall late last week, marking its worst week since the pandemic, reflecting investor concerns about the new policies. Reactions among U.S. citizens vary, with some seeing potential long-term benefits in fostering domestic production (if that goal works out) and others fearing immediate negative impacts on living costs. Companies are also adjusting, with some international exporters possibly reducing prices to offset tariffs, but the overall expectation is a rise in consumer prices — particularly for clothing, furniture, and other imported goods.

Quote of the Day

Bill Gates reflects on a 50-year-old computer code

As Bill Gates approaches his 70th birthday, he’s been reflecting on a remarkable journey that began with a teletype machine and a dream, tracing back to the moment 50 years ago when a simple piece of code became the cornerstone of a tech revolution.

Gates, co-founder of Microsoft $MSFT ( ▲ 1.86% )  nostalgically revisited the early days of his career with a poignant blog post celebrating the golden anniversary of an idea that rapidly evolved into a global phenomenon.

In 1975, inspired by a Popular Electronics magazine article, Gates and Paul Allen, his high school friend, promised to develop software for the then-groundbreaking Altair 8800 minicomputer. The only problem? They hadn’t actually created the code yet. Rising to the challenge, Gates and Allen utilized the BASIC programming language to craft what would become the Altair's first operating system. Gates fondly remembers this as "the coolest code I’ve ever written" — a sentiment echoed in his blog post where readers can even download the original program!

This pivotal creation laid the groundwork for Microsoft, a company that would redefine how the world interacts with technology. From introducing household staples like Windows, Word, Excel, and PowerPoint, to sparking the personal computing revolution, Gates’s early endeavors have left an indelible mark on both technology and culture. Today, Microsoft boasts a market value of about $2.8 trillion and celebrates decades of innovation. Here's to dreaming big, eh?

Poll of the Day

Result’s from Friday’s Poll of the Day

We asked: Do you love the impact of the latest Trump tariffs?

You answered:

⬜️⬜️⬜️⬜️⬜️⬜️ Yes! The world has been taking advantage of the U.S. for generations! (101 votes)

 🟩🟩🟩🟩🟩🟩 No! I don't love seeing the stock market tank no matter what the justification! (698 votes)

Total: 799 Votes

Public companies in today’s newsletter

$SPX ( ▲ 1.81% )  $MSFT ( ▲ 1.86% )