When markets get rattled by tariffs, tech stocks tank, and the media starts yelling “panic!”, one type of investor thrives: the calm, cash-ready buyer. But if you’re eyeing pandemic-era stocks like Zoom (ZM) thinking you’re about to score a comeback story… slow your roll.
Here’s why catching a falling knife like Zoom could shred your portfolio — and what to look for instead.
Zoom Is Down 87% From Its Pandemic Peak — and for Good Reason
During lockdown, Zoom was the hero. Remote work exploded, shares skyrocketed to over $500. Today? It’s crawling around $68 — with fundamentals that no longer justify hype. Growth has stalled, competition is fierce (hello, Teams, Meet, Slack), and even hybrid work policies are fading.
And let’s be blunt: if your bullish case hinges on another global lockdown, you’re not investing — you’re gambling.
Trade War Reality Check: You Need Cash-Producing, Debt-Light, Boring Stocks
This trade war isn’t abstract. As of April 2025:
U.S. markets lost $11 trillion in value since Inauguration Day.
Individual investors bought $4.7B in net equities in one day alone (April 3), trying to “buy the dip.”
Hedge funds dumped $40B in stocks after Trump’s “Liberation Day” tariffs (April 2).
The pros are running. Retail is chasing.
Now ask yourself — who usually wins that game?
What Actually Works During Recessions?
Forget flash. The winning formula today looks like this:
Low debt + strong cash flow
Non-cyclical demand
Dividend-paying with pricing power
These companies didn’t moon during the pandemic — but they’re still standing. Stocks like:
Thermo Fisher (TMO)
Kroger (KR)
Bank of New York Mellon (BK)
Masimo (MASI)
Valvoline (VVV)
And don’t sleep on gold (GC00) — still up while everything else burns.
Diversification: Your Only Real Insurance Policy
Timing the market is cute until you realize you’re not George Soros. Want resilience?
Build a portfolio that includes:
U.S. healthcare and utility stocks
Small- and mid-cap ETFs
Bonds and dividend aristocrats
Some cash — yes, cash — for moments like now
Even JPMorgan agrees: fleeing U.S. equities for international stocks doesn’t shield you from a U.S. recession. The data shows international markets fall too, often harder, while the dollar gains.
FAQs – Cut Through the Noise
Q: Is Zoom undervalued now?
A: It’s cheap for a reason. Don’t confuse a price drop with value. Fundamentals are weak, and growth drivers have evaporated.
Q: What sectors should I focus on now?
A: Defensive plays: healthcare, utilities, consumer staples. They don’t dazzle, but they survive.
Q: Should I sell everything?
A: Only if you want to lock in losses. The smarter play is rotation, not liquidation.
Q: Can tariffs hurt my 401(k)?
A: Absolutely. Trade wars hit global supply chains and corporate profits. Rebalance while you still can.
Q: What’s the best recession hedge?
A: Cash-flow-positive stocks, gold, and staying diversified. Don’t put faith in a single “savior stock.”
Zoom had its moment. That moment is over. If you want to thrive in this new market, bet on what earns quietly, not what went viral once. Forget catching knives — it’s time to build armor.
