Stocks could be heading into a bear market amid tariff chaos, and investors should wait for lower prices to add risk, according to Ritholtz Wealth Management CEO Josh Brown. “It’s a really tough time. It’s not a clearing event. And while opportunities are being created by stocks falling, there might be better opportunities later,” Brown said Thursday on CNBC’s ” Halftime Report .” “We are in a downtrend in a bear market. People need to behave accordingly.” Stocks plunged Thursday after President Donald Trump slapped big tariffs on countries across the world. Investors were caught off guard by the aggressive country-specific duties Trump announced, including a 54% total tariff on Chinese imports. At the Thursday session low, the S & P 500 tumbled as much as 4.5%, on track for its worst single day since September 2022. The S & P 500 is back in correction territory amid a broad sell-off, down 11% from its February record high. Wall Street defines a bear market as a 20% pullback from a recent high. .SPX YTD mountain S & P 500 “What makes this one different is that it’s not a market event … it is really an event that impacts the real economy, Main Street,” Brown said. The widely followed investor said clients in his firm’s tactical strategy have had their equity exposure dialed back, going from his recommendation of 100% in U.S. large-cap equity to a combination of 60% Treasury bills and 40% U.S. large-cap equity. Nevertheless, there are a few corners in the market that still shine despite the turmoil, Brown said. The investor revealed he bought elevator installer Otis , which he believes can be recession-proof. He noted that Otis makes 87% of its net income on the service contracts. Shares were up more than 1% Thursday. Brown also said Berkshire Hathaway and Netflix have fared better while most of the stock market suffered. Both stocks were near the flatline Thursday afternoon. A flight to safety move pushed the 10-year Treasury yield down to 4.05% Thursday, touching levels not seen since October. “This is, I think, a critical piece of what wealth management is. It’s acknowledging the long-term returns and the reason why you take risk, but pairing that with the realities of investor psychology and market behavior,” Brown said.
