To be frank, if you’ve been following the stock market recently, it’s hard not to liken the experience to a rusty, old rollercoaster. One minute you’re at the peak of the world, the next, you’ve dropped right off. The story you hear over and over again? Tariffs, tariffs, tariffs! Is that really the whole story? I'm here to tell you, it's not. It turns out, though, that it’s a lot more complicated, and frankly, much more human, tale than those headlines would lead you to believe.

Tariffs Cast a Long Shadow, But...

Yes, tariffs undoubtedly play a role. When President Trump imposes tariffs on goods, or even threatens to, the markets respond dramatically. Businesses become skittish, supply chains get thrown out of whack, and consumers are the ones who end up suffering the consequences. We’ve witnessed cases, such as the response of the crypto market to tariff announcement—both in the affirmative and the reverse. That's a direct impact.

To blame the entire market’s volatility on just tariffs is as ridiculous as blaming a single raindrop for a flood. Then what about the global economic slowdown that was already in the works before the start of the tariff wars? How about the Federal Reserve’s interest rate increases, intended to bring down an overheating economy? Add to that a toxicity of incompetent crisis management and stir in the always-lurking geopolitical tensions just under the surface. To dumb it down would be both intellectually dishonest and, quite frankly, insulting to your intelligence.

Think of it this way: tariffs are like a sharp, unexpected turn on that rollercoaster. Now, those are some gasping definitelys! It is the overall track of the global economy, interest rates and moody investors that decides whether the trip ends happily or derails catastrophically.

Bitcoin: Digital Gold or Fool's Gold?

Now, let's throw another ingredient into the mix: Bitcoin. Booming out of the crypto hype machine, we hear that it’s a “safe haven,” a magic digital gold that will shield us from inflationary economic tempests. But is it really?

The reality is, Bitcoin has been very unpredictable. Craig Rudes of Long Island Blockchain believes that the borderless nature of blockchain technology is an asset. He argues that it protects the technology from national manipulation, but the truth is far from so straight-lit. We’ve observed a significant relationship between the crypto market and global market volatility. Performance in traditional financial markets, such as the S&P 500 and Nasdaq, impacts crypto markets as well. It's often an exaggerated version of the traditional market's trends – amplifying both the highs and the lows.

Don't forget all those multi-point swings day-to-day. That's not exactly the picture of stability you'd expect from a "safe haven." Mitchell O. Goldberg of ClientFirst Strategy Inc. might call it "hocus pocus," and while that's a strong statement, it highlights a critical point: Bitcoin's fundamental value remains a hotly debated topic.

The unexpected connection here is this: Bitcoin's volatility, like the stock market's, is driven by human emotion. This is because fear, greed, and uncertainty are as equally powerful in the crypto world as they are on Wall Street. We long for an anchor, a place of stability amid disarray, a space to weather the storm. For now, Bitcoin seems to be stuck in the same choppy waves as all the rest.

The African Perspective: A Forgotten Voice

How are these unpredictable tariffs and market shifts affecting African economies—and their ability to trade with the U.S.?

Consider the example of a small business owner in Kenya, looking to import raw materials for their manufacturing enterprise. Then all of a sudden, tariffs come into play, driving up the cost of those materials. Their costs increase, their competitiveness decreases, and they could even be driven to lay off employees. This is not some ivory tower pet theory of economics, this is real life to the tune of millions.

Or think about a consumer in Nigeria, who is just trying to be able to afford food or healthcare. Tariffs increase the prices of imported goods, stretching their already limited funds even further. The impact is especially disproportionate, hitting the most vulnerable the hardest.

We constantly talk about tariffs in the context of trade deficits or national security. Yet the human toll, particularly in developing countries, frequently escapes our notice. This is where their outrage should be directed instead. It’s a story of global interconnectedness, where a decision made in Washington can have devastating consequences thousands of miles away. It’s a hard balancing act between individual freedoms and societal needs.

So there you have it, tariffs are responsible for the daily stock market rollercoaster right? Yes, they contribute. But they are not the sole culprit. Just like a complex ecosystem, the market has homeostasis. It’s unpredictable even in the face of positive news, negative news, global economic trends, shifts in monetary policy, and most importantly, human emotion.

And what of Bitcoin, you ask. Contrary to what many assume, it’s not an environmental paradise. Instead, it’s no different than any other asset class subject to the same market forces.

Educate yourself. Don't blindly accept the headlines. Get to know the five drivers of demand and supply at work on the market. Diversify your investments. And lastly, this is the most important caveat of them all – don’t make fear or greed your guide. As always, keep in mind that investing is a long-distance endeavor—not a sprint! And other times, the best approach is just to put on your seatbelt and weather the storm.

What can you do? Educate yourself. Don't blindly accept the headlines. Understand the interplay of factors that influence the market. Diversify your investments. And most importantly, don't let fear or greed drive your decisions. Remember, investing is a marathon, not a sprint. And sometimes, the best strategy is simply to buckle up and ride out the storm.