PART 3: A Live Portfolio Case Study of an MFG Student’s Second Income Stream Account!! What Happens When You Get Margin Called Again?
Another continuation of a real-life portfolio example during a Stage 4 Decline in Market Mayhem!!
Hey, MFG!!
YES! YES! YES!
A couple of days ago, I wrote “When The Market Drops Again: What Happens to Your Second Income Stream? Did You Get A Margin Call?😱”
Today, I want to provide you with another update due to the historical trading day we experienced yesterday.
It was one of the wildest trading days Wall Street has ever seen.
Shortly after markets opened this morning, the Nasdaq Composite ($COMPQ) was up 4.6%.
The gain looked like the kind of rebound that often accompanies volatile trading and bear markets.
There are often good days in the midst of a bad stretch, but this was more like a few good minutes!!
After peaking at 10:27 a.m., the Nasdaq began to fall.
By 1:30 p.m., the tech-heavy index was in negative territory, and it closed down 2.2%.
It was the largest blown gain for the Nasdaq since at least 1982, according to Dow Jones Market Data.
For the S&P 500 ($SPX), it was the first time it's ever been up 4% or more on the day and closed down more than 1%. (Based on available data since 1978.)
The large-cap index is now down 12% since tariffs were announced last Wednesday.
The U.S. markets have lost $7.7 trillion in market value since then—the largest 4-day loss on record, Dow Jones Market Data calculates.
Wall Street's hopes that President Donald Trump would cut deals on tariffs seem to be fading.
China is holding strong to its threat of a 34% retaliatory tariff, prompting White House Press Secretary Karoline Leavitt to confirm yesterday that China will face a combined tariff of 104% starting at midnight.
Meanwhile, the S&P 500 is now on the edge of a bear market, meaning a 20% decline from the prior peak.
If you know me, I’m watching the markets closely here!! I’m stalking my charts.
Here is what happened to this MFG’s student Second Income Stream portfolio after originally reconciling the margin call and riding yesterday’s wild wave!!