Market Panic - Here's How the Pros Handle It
Stocks are in turmoil—fear is everywhere. But while others panic, smart traders see opportunity. That's why you need to hear from Professor Bierman - one of the best crisis traders in America. He's identified a small group of stocks poised to thrive as markets crash. They offer consistent income, even in downturns… low risk and high resilience… protection against volatility and more. Click here now to see why the smartest investors turn to this strategy in turbulent times. | | Here's the Truth About Tariffs, Inflation, and Markets
by Brandon Chapman, CMT | If I hear the phrase, "tariffs are a tax" one more time, I'm going to puke! | Listen, can tariffs create higher prices for consumers, sure. However, that isn't defined as inflation. Inflation is the general rise in prices over time. | For example, if we posted a CPI inflation of less than 2% over the next few months, would anyone in the financial media talk about inflation? No, in fact, they would say that inflation has been tamed. You might ask about the higher level of prices, but they'd still tell you "there isn't any inflation." | A tariff is a one-time adjustment, assuming that the tariff level isn't adjusted higher over time. As a result, there will be no lasting inflationary impact of a tariff on prices. | If a tariff is instituted, it's important to understand who pays the tariff. Is it end consumers, nope! The rhetoric is constantly misleading in this respect. If Apple Inc. (AAPL) produces an iPhone in China, is it the end consumer who pays it? Nope! Then who does? AAPL pays the tariff! | Of course, the rebuttal will be that Apple will just pass along the higher costs to consumers, as if Apple has perfect pricing power for all of their products. A new iPhone is, after all, a necessity like toilet paper, right? | The answer is no. | Apple is considered a cyclical company for a reason. Their profitability is certainly impacted by the economic cycle. As a result, Apple will go to their supplier and ask them to reduce the price they pay and they will attempt to pass along as much as they can to consumers, but, at the end of the day, consumers will decide the price they're willing to pay. | It goes even deeper than that… |
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