Why Felix Prehn of Goat Academy Says Tariffs Will Return and What It Means for Investors
Felix Prehn of Goat Academy explains why recent tariff changes are temporary, how banks advise big clients, and what investors should know about the current stock market.
Felix Prehn, the founder of Goat Academy, recently shared important insights about the current stock market and the future of tariffs. According to Prehn, many investors are excited because some tariffs have been removed. However, he warns that these changes are likely temporary. Major banks, including Goldman Sachs, have told their biggest clients that tariffs could come back soon, just in a different form.
What Are Tariffs and Why Do They Matter?
A tariff is a tax that a government places on goods coming from other countries. Tariffs can make imported products more expensive. This can affect the prices of many things people buy and can also impact the stock market. When tariffs are removed, it can make stocks go up because companies expect to make more money. But if tariffs return, it can cause uncertainty and make the market more risky.
Why Are Banks Telling Clients to Be Careful?
Goldman Sachs, one of the largest banks, has warned its clients that the recent removal of tariffs is not the end. The U.S. government has several ways to bring tariffs back quickly. For example, they can use different laws to set new tariffs, sometimes as high as 50%. These new tariffs might only last for a short time unless Congress decides to keep them. This means investors should not assume that the market will stay strong just because tariffs are gone for now.
What Is Happening in the Stock Market?
Recently, many big technology stocks like Nvidia, Tesla, Amazon, Apple, Microsoft, Google, and Meta have gone up in value. This is partly because of strong company earnings and the news about tariffs. However, Prehn points out that the market often gets too excited and can pull back after a big jump. He also notes that retail investors—regular people who buy stocks—have slowed down their buying. This is the slowest pace of retail buying in 2025 so far. When fewer people are buying, it can make the market more unstable.
What Should Investors Do Now?
Felix Prehn suggests that investors should be careful and selective. Instead of buying any stock that looks good, it is better to look for strong companies with good long-term potential. He also explains that the market is currently in a "greed" phase. This means many people are feeling confident and buying stocks, but it can also be a sign that prices are too high. The "fear and greed index" is a tool that measures how investors are feeling. When it is high, it means people are greedy, and sometimes that is a good time to be cautious.
The Importance of Independent Advice
Prehn also shares that he does not accept money from companies to promote their stocks or products. He believes in giving honest and independent advice to help people make better decisions. This is part of the mission at Goat Academy, where the focus is on teaching people how to build wealth and avoid common mistakes.
Conclusion
The recent changes in tariffs may not last, and investors should be ready for new rules in the future. By staying informed and being careful with their choices, investors can protect themselves from sudden changes in the market. Felix Prehn and Goat Academy continue to provide clear and simple advice to help people succeed in investing.
Learn more about Felix Prehn and Goat Academy.