Crypto News: Should you sell stocks and buy a car?

Wealth is now exclusively for Bloomberg.com subscribers. As a loyal reader, we'll keep sending it to you for a limited time. If you'd like to continue receiving Wealth, and gain unlimited digital access to all of Bloomberg.com, we invite you to subscribe now at the special rate of $129 for your first year (usually $299).
Learn more

The stock market may have grabbed much of your attention this week. But don't forget the market for something else important: cars.

Yes, the S&P 500 is now negative for the year as tariff uncertainty and chaotic politics weigh down US stocks. At the same time, economic storm clouds are brewing, with some bankers even talking about a recession.

Worried? Here's a guide for how to handle increasingly volatile markets. Further, in an interview I had with Katie Nixon of Northern Trust Wealth Management, the chief investment officer made a compelling case for rotating your exposure toward quality stocks with solid earnings and cash flow in defensive sectors such as healthcare and consumer staples.

But I also want to turn your attention to your garage. Over the past few days, traders, industry executives and even your average car shopper have been worrying that the 25% levy Trump imposed on Canada and Mexico could increase auto prices. One study found tariffs could jack up the price of cars by as much as $12,000. The administration has since said it will exempt some automakers from newly imposed tariffs for one month. The situation is chaotic and confusing.

I asked three experts in different industries a question that might be on a lot of Americans' minds right now: "If I need a new car, should I hurry up before tariffs hit?"

Their answers were unanimous.

"Now would be a good time while there's still inventory on the lots," said Robert Handfield, a professor of supply chain management at North Carolina State University.

"Even if you're not in a position to buy a car this week or this month, I would at least speed up the research process," said Brian Moody, executive editor for Kelley Blue Book, the vehicle valuation and research outfit. "Sometimes even just the uncertainty causes people to change their buying behaviors and high demand could result in high prices."

Researching might help you figure out what features come standard in one car but cost extra in another. Even going on a test drive could help you start conversations with dealerships about financing options, and Moody noted that some 0% options are still out there, but not as many as there were as recently as December. He also stressed these deals are for people with sterling credit, so if that's not you, your budget may need to change.

Meanwhile, David Nash, founder and financial planner at Tend Wealth in Los Angeles, said your purchasing decision should be driven by need. An ideal scenario he painted was of buying the car you may need now before a hypothetical price increase, and then later refinancing in the event that rates come down. Still, he emphasized that "you pay a premium for that new car smell" and that it's in those final years of holding onto an old car where you can really make back some money.

That's partly why his family has held on to their old, beat-up Prius. In an age of rising volatility, I'll take that sense of familiarity any day. — Charlie Wells

P.S. Send questions about your own financial dilemmas to bbgwealth@bloomberg.net. We may get expert answers for you, and feature your question and the answer in an upcoming newsletter.

Market Moves

German bonds had their worst day since after the fall of the Berlin Wall. The yield on the nation's 10-year bonds recorded its biggest jump since March 1990, up 30 basis points on Wednesday, after chancellor-in-waiting Friedrich Merz outlined a sweeping fiscal overhaul late on Tuesday. The last time benchmark bond yields surged so much, West Germany and East Germany were about to reunify as the Cold War drew to a close.

Oil slumped across several tumultuous sessions. Traders continued to digest Trump's sweeping tariffs on major US trading partners and OPEC+'s unexpected production hike. US Gulf Coast refineries are placing fewer orders for crude from Mexico, which is planning to announce its response to Trump's tariffs on Sunday. The Canadian province of Alberta will work on building pipelines to the coast to increase oil shipments to Asia and Europe, according to its premier.

Wealth Gains

The biggest gainers and losers on the Bloomberg Billionaires Index over the past week:

Francoise Bettencourt Meyers was the biggest winner in dollar terms. The heir to the L'Oreal fortune gained $4.8 billion, bringing her net worth up to $82.1 billion. The majority of Bettencourt Meyer's fortune stems from her stake in L'Oreal, the world's largest cosmetics company. European stocks have had a strong start to the year, and L'Oreal is up more than 5%.

Jensen Huang saw the biggest loss in dollar terms. The president and chief executive of Nvidia lost $11.8 billion, which took his net worth down to $111.9 billion. The majority of Huang's fortune is derived from his stake in Nvidia. Shares in the maker of computer processors and artificial intelligence products have been under pressure on concerns about DeepSeek and tariffs.

Real Estate Watch

DOGE Risks a New $5 Billion Headache for Struggling US Landlords

The Postal Square Building in Washington Photographer: Kent Nishimura/Bloomberg

On a two-mile stretch of Washington, DC, lies evidence of the pain coming for the already beleaguered US commercial real estate market. The Trump administration's Department of Government Efficiency says it has canceled at least four leases in the area. Another three buildings nearby rank among the government's most expensive office leases expiring this year — making them potential targets for cuts.

DOGE, the cost-cutting entity spearheaded by Elon Musk, claimed on X last week that it has terminated more than $170 million of leases, focusing on what it says are vacant or underused buildings. That's likely just the start of real estate cutbacks, raising the prospect of more empty properties — many of them aging and in need of upgrades — for landlords desperate to fill space in the post-pandemic era. Read the full story here.

Billionaire John Paulson Buys Rest of Puerto Rico Tower, Ending Fight

John Paulson Bloomberg

The investor has acquired full control of a luxury real estate development in Puerto Rico that has been at the center of a bitter legal dispute. Paulson Puerto Rico is now the 100% owner of the Vanderbilt Residences, a 22-story beachfront residential tower being built in San Juan, the company said in a statement.

A legal fight over the tower erupted in 2023 when Paulson's longtime business partner in the US territory, Fahad Ghaffar, argued he invested $11 million in the project for a 44% stake. In numerous court filings, Paulson claimed that Ghaffar had no, or little, ownership and counter-sued. The agreement settles this part of their broad-ranging legal feud, both parties said.

Know Anyone Who…?

This week, we're looking to speak to people about how they paid or are planning to pay for college. Do you get financial aid? Was it enough to cover the costs? Here's a survey you can fill out or email bbgwealth@bloomberg.net to get in touch.

Some of our best journalism at Bloomberg Wealth comes from your own stories and we'd love to hear from you, your friends or clients.