---
title: "When the entire market is falling, the moats of some companies are actually being washed deeper."
type: "Topics"
locale: "en"
url: "https://longbridge.com/en/topics/28305697.md"
description: "On Friday night, the rebound in the U.S. gave many investors a sigh of relief, but the mud stuck to the soles of their shoes could still make them slip again. The Dow barely closed up 0.08%, the S&P 500 also rose slightly by 0.08%, and the Nasdaq gained 0.52%. The increase in trading volume reflects both bottom-fishing attempts and the exit of trapped positions. At its core, the current market dynamic is essentially a misalignment between short-term sentiment and long-term value. The roughly 10% pullback in the three major indices year-to-date has led to significant valuation adjustments for the "Magnificent Seven." However, this correction seems more like a recalibration of earlier excessive optimism..."
datetime: "2025-03-24T08:09:14.000Z"
locales:
  - [en](https://longbridge.com/en/topics/28305697.md)
  - [zh-CN](https://longbridge.com/zh-CN/topics/28305697.md)
  - [zh-HK](https://longbridge.com/zh-HK/topics/28305697.md)
author: "[财界老袍儿](https://longbridge.com/en/profiles/17746390.md)"
---

# When the entire market is falling, the moats of some companies are actually being washed deeper.

**On Friday night, the rebound in the U.S. gave many investors a sigh of relief, but the sticky mud on their soles could still make them slip again at any moment. The Dow barely closed up 0.08%, the S&P 500 also rose slightly by 0.08%, and the Nasdaq gained 0.52%. The increase in trading volume reflected both bottom-fishing attempts and the escape of those unwinding their positions.**

![0326881763570c208af7c0ec939a96a](https://pub.pbkrs.com/uploads/2025/536f4b18328bc2230ca175b9e51e890b?x-oss-process=style/lg)

The core of the current game is essentially the misalignment between short-term sentiment and long-term value. The three major indices have seen a roughly 10% pullback since the beginning of the year, leading to significant adjustments in the valuations of the "Magnificent Seven." However, this correction seems more like a recalibration of previous over-optimism. **Nike**$Nike(NKE.US)’s 7% single-day plunge, ostensibly due to weaker-than-expected quarterly sales guidance, actually reflects a deeper test of brand premium power amid a consumer downgrade trend in a high-interest-rate environment.

**FedEx**$FedEx(FDX.US)’s nearly 7% cliff-like drop is a manifestation of supply chain restructuring and cost transmission hurdles. Its latest earnings report shows transportation costs soaring 18% year-over-year, but customer tolerance for rising freight costs is nearing a breaking point. These micro-level cracks actually reflect broader macro-level issues quite well.

**TSMC**$Taiwan Semiconductor(TSM.US) has locked in its mass production schedule for 2025, with orders from giants like Apple and NVIDIA already booked through 2026. These "picks-and-shovels" stocks, occupying the technological high ground, are enjoying a premium for their certainty. Meanwhile, still-overvalued metaverse concept stocks and unprofitable AI startups continue to bear the brunt of capital outflows.

**Now is a great time to sift gold from the sand. Essential consumer giants like Walmart**$Walmart(WMT.US), with their low dynamic P/E ratios and high free cash flow yields, are actually gaining pricing power in an inflationary environment thanks to their omnichannel retail networks. Even in the battered tech sector, **Microsoft**$Microsoft(MSFT.US)’s 28x P/E ratio paired with 16% earnings growth and **NVIDIA**$NVIDIA(NVDA.US)’s 35x P/E ratio alongside 40% revenue growth highlight the emerging odds in favor of these stocks. However, **left-side trading requires strict position control**—keeping 10% cash for extreme volatility ensures you stay in the driver’s seat when sentiment reverses.

**The darkest hour is just before dawn, but the stars never lie. Investing isn’t about dodging every downturn—it’s about spotting which companies’ moats grow deeper in a crisis. Just like TSMC’s factories burning bright through the night, true value can never be fooled by candlesticks.**

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