Yesterday, March 3, 2025, the stock market had its worst day of the year after President Trump dropped a tariff bomb on imports from Canada and Mexico. The S&P 500 tumbled 1.8%, the Dow Jones lost nearly 650 points, and the Nasdaq took a 2.6% nosedive as traders hit the sell button faster than a kid avoiding vegetables at dinner.
But was this reaction justified?
In my view, this was a classic overreaction—the kind where investors panic first and ask questions later. And when the market hands you irrational selling, you take it—I sold in the morning and repurchased at a discount. It was like finding my favorite stocks on the clearance rack while everyone else was sprinting for the exits.
Why the Panic? Yahoo’s Take on Market Reactions
A Yahoo Finance report argues that tariffs weren’t really the villain of the day. According to veteran trader Larry Tentarelli, the market’s tantrum had more to do with:
- Technical factors already weighing on stocks
- Rising bond yields, which spooked investors into shifting funds out of equities
- Corporate earnings slowdown, fueling overall uncertainty
So, the tariffs may have been the spark, but the real fire was built on broader market fears. In other words, the market just needed an excuse to throw a fit—and tariffs fit the bill.
Taking Advantage of the Fear
While traders were running for cover, I was adjusting my portfolio. Here’s a quick look at some of my moves:
| Time (EST) | Action | Ticker | Price | Notes |
|---|---|---|---|---|
| 10:18 AM | Sell | NWE | 56.29 | Sold early at a high price |
| 12:35 PM | Buy | DIN | 24.44 | Re-entered at a discount |
| 1:45 PM | Buy | PNC | 191.18 | Bought back after a drop |
By late afternoon, I also repurchased WEN, CUBE, DVN, and MSFT at lower prices, locking in better value.
Seizing the Discount Further: I Increased Positions in FCT & AGNC
I didn’t just buy back what I sold—I increased positions in FCT and AGNC. Why? Because income-generating investments on sale are even better than a buy-one-get-one pizza deal.
First Trust Senior Floating Rate Income Fund II (FCT)
- A closed-end fund (CEF) that invests in senior secured loans
- Benefits from floating interest rates, making it a great hedge against inflation
- Market overreaction made its dividend yield even more attractive
AGNC Investment Corp. (AGNC)
- A mortgage REIT (mREIT) that earns income from the spread between mortgage rates and borrowing costs
- Holds agency-backed mortgage securities, making it relatively low risk for an mREIT
- Buying more at a lower price meant a higher yield and better long-term returns
Some investors panic when stocks fall. I, on the other hand, get excited when my passive income investments go on sale.
SCM: A High-Yield BDC Play
While we’re talking about high-yield plays, I also increased my position in Stellus Capital Investment Corporation (SCM).
Why SCM?
- A business development company (BDC) that provides loans to mid-sized companies
- 90% of its taxable income is distributed to shareholders (cha-ching!)
- Focuses on secured loans, so there’s built-in downside protection
Potential Risks
- Interest rate sensitivity – BDCs borrow money to lend it, so rising rates can increase costs.
- Credit risk – If the economy takes a nosedive, mid-sized borrowers could struggle.
For me, the risk-reward was worth it—especially at a discount.
ETFs That Caught My Eye: RYLD & QYLD
With all the market chaos, two covered call ETFs stood out:
RYLD: Russell 2000 Covered Call ETF
- Sells covered calls on the Russell 2000 Index (small caps)
- Monthly high-yield dividends
- A chance to earn premium income even in volatile markets
Bought more at $15.67 per share.
QYLD: Nasdaq 100 Covered Call ETF
- Uses the same covered call strategy but on tech-heavy Nasdaq 100
- Provides high yields even when tech stocks slump
- A solid income hedge against future market volatility
Reinvested dividends at $17.75 per share.
Final Takeaway: RYLD vs. QYLD
- RYLD = Small-cap exposure, more risk, but higher growth potential
- QYLD = Tech exposure, more stable, but sensitive to rate hikes
Since I prioritize cash flow, I added to both—because when the market panics, my portfolio parties.
Lessons From This Selloff
The Market Overreacts – When headlines scream "disaster," fundamentals often tell a different story. Panic selling = buying opportunity.
Diversification Matters – Some sectors got slammed harder than others. Spreading out investments = less stress, more opportunities.
Having a Plan Pays Off – Instead of freaking out, I followed my sell high, buy lower strategy—turning market fear into portfolio gains.
My Thoughts
Yesterday’s market drop felt dramatic, but let’s be real—it wasn’t about tariffs alone. The Yahoo Finance report nailed it: this was a mix of interest rate fears, economic uncertainty, and traders itching for an excuse to sell.
Me? I saw an opportunity and took it.
Will the selloff continue? Maybe. But if the market keeps throwing discounts my way, I’ll keep buying the dips.
Did You Buy the Dip?
Let me know—did you take advantage of the panic, or are you waiting for more downside?
Disclaimer:
This post is for entertainment and educational purposes only. I’m not a financial advisor, just a guy who gets excited when stocks go on sale. Do your own research before making investment decisions. If you take investing advice from strangers on the internet, you might also believe that “stonks only go up.”
