| DAILY ISSUE Tom Yeung here with today’s Smart Money. Americans have definitely felt “a little disturbance” from the ongoing trade wars this week, just like the President Trump said we would. On Monday, the Dow Jones Industrial Average sank 1,000 points, while the tech-heavy Nasdaq-100 saw a $1 trillion wipeout – its largest one-day selloff so far this year. This week’s selloff follows last week’s, ignited by the tariffs on Canada, Mexico, and China… which followed another selloff in early February when Trump first announced his plan to impose the tariffs. This leads to the question… Can we trust Donald Trump to manage the U.S. economy? Most people’s answers will depend entirely on who they voted for in the 2024 election. To his fans, Trump can do no wrong. He maintains a 93% approval rating among Republican voters (a figure that has only gone up since his inauguration). To his detractors, Trump is a catastrophe. His approval rating among Democrats sits at just 4%. But the truth is a bit more nuanced. So, in today’s Smart Money, we’ll take a look at what’s going on. Then, I’ll share why we’re still bullish on certain companies… and where you can find them. | Recommended Link | | | | AI is creeping into every aspect of our daily lives… According to billion-dollar fund manager Louis Navellier, it’s never been more important to AI-proof your wealth. He lays out three simple steps to take ASAP in his new video. Click here to watch it now. |  | | Problems... and Solutions Trump’s game of “tariff chicken” has most definitely depressed shares of companies. But America’s issues go beyond tariff news. Here are three examples… - Tax cuts. Congress appears incapable of delivering the tax cuts Trump promised on the campaign trail. Markets had anticipated a corporate tax reduction to 15% from 21%, boosting after-tax earnings and raising company valuations. Now, even passing a stopgap bill to keep the government running is a challenge.
- High valuations. The president inherited a stock market at near-frothy valuations. In November, the weighted S&P 500 index had an average forward price-to-earnings ratio of 26.6X – driven by elevated figures from tech companies. com Inc. (AMZN) traded at 36X earnings… Netflix Inc. (NFLX) at 40X… and Tesla Inc. ( TSLA) at 122X.
It’s one of the key reasons Eric sold shares in Alphabet Inc. (GOOGL) and Amazon in his Fry’s Investment Report service late last year. - Setiment. Many Americans simply don’t feel good for reasons beyond the president’s control. Egg prices rose because of avian flu (although they’re dropping so far in March)… mortgage rates remain stubbornly high… and pandemic-era savings are spent.
This creates a problem. Once people start feeling negative about the economy, the cycle can become extremely difficult to stop. It’s one of the reasons why countries fall into recessions, and why this latest selloff has made us cautious about the U.S. stock market. What Does This Mean for Your Portfolio? We remain focused on companies resilient to tariffs. As we talked about in last Thursday’s Smart Money, during Trump’s 2018 tariffs, firms like Salesforce Inc. (CRM), Intuit Inc. (INTU), and Advanced Micro Devices Inc. ( AMD) thrived, with gains of 20%, 50%, and 100%, respectively. The same principle holds today. Trump’s 2025 tariffs may create headlines, but they won’t derail the industries driving long-term wealth creation. It’s one of the reasons why Eric recently recommended a supplier of cutting-edge semiconductors to the paid-up members of his Fry’s Investment Report. This chipmaker is emerging as a dominant force in servers, and its robust growth trajectory will likely continue into 2025 and beyond. All this to say, Eric expects this company to do well, regardless of whether America has a tariff on washing machines or not. Eric will provide more detailed information about this firm in tomorrow’s March monthly issue of Fry’s Investment Report. To make sure you get all the info on this company, including Eric’s “Buy” instructions, click here to learn how to become a member of Fry’s Investment Report. At Fry’s Investment Report, Eric will prepare you to survive – and thrive – in any market. In it, he looks for big-picture trends that drive huge, multiyear moves in entire sectors of the market. He is then able to extract and exploit the moneymaking opportunities a regular Wall Streeter would miss, showing his subscribers the right stocks... at the best prices. As a member, you’ll get access to all of Eric’s latest recommendations, as well as his monthly issues and my weekly updates. Click here to lean more. Regards, Thomas Yeung Markets Analyst InvestorPlace | 
No comments:
Post a Comment