Tariffs – Preview

President Trump is dominating the headlines with a flurry of early activity. Much of that “activity” is talk about what might happen in the future. The financial world is most focused on the prospect of tariffs, and I’m already getting questions from DKI subscribers about the topic. Right now, I have an article in edit that I’m holding for possible comments from members of the DKI Board of Advisors who are experts in politics and international relations. I want to see if they have opinions that differ from mine before putting something in print. I can give you all a quick preview of the two key points:

1) President Trump likes to use threats of big action to gain concessions on other related issues. That means that some of the big tariffs being discussed aren’t intended to restrict future trade; but rather, are intended to persuade other countries to cooperate on other issues. (I know some of you would use words other than “persuade” and “cooperate”, but I think you get the point.)

2) I’ve gone through the DKI portfolio and believe we have very little exposure to likely future tariffs. I’ll insert the obvious point that without knowing what’s going to happen, it’s impossible to know we’re protected and that any actions will have unintended consequences. It’s also possible that tariffs or fears of tariffs would take down the multiple on the S&P 500 or the NASDAQ and DKI stocks could trade down with the market. We are hedged for that.

I’m sending my thoughts to Board members right now and have a call scheduled with a European subscriber to better understand their point of view.

I am not making any policy-related changes to the portfolio right now and will be providing subscribers with more information on a timely basis. Many of you will have thoughts, questions, and perspectives you may want to share. Please feel welcome to post in the comments or to reach me directly at IR@DeepKnowledgeInvesting.com . I read everything that comes to that address.

 

Information contained in this report, and in each of its reports, is believed by Deep Knowledge Investing (“DKI”) to be accurate and/or derived from sources which it believes to be reliable; however, such information is presented without warranty of any kind, whether express or implied.  DKI makes no representation as to the completeness, timeliness, accuracy or soundness of the information and opinions contained therein or regarding any results that may be obtained from their use. The information and opinions contained in this report and in each of our reports and all other DKI Services shall not obligate DKI to provide updated or similar information in the future, except to the extent it is required by law to do so. 

The information we provide in this and in each of our reports, is publicly available. This report and each of our reports are neither an offer nor a solicitation to buy or sell securities. All expressions of opinion in this and in each of our reports are precisely that. Our opinions are subject to change, which DKI may not convey. DKI, affiliates of DKI or its principal or others associated with DKI may have, taken or sold, or may in the future take or sell positions in securities of companies about which we write, without disclosing any such transactions.

None of the information we provide or the opinions we express, including those in this report, or in any of our reports, are advice of any kind, including, without limitation, advice that investment in a company’s securities is prudent or suitable for any investor. In making any investment decision, each investor should consult with and rely on his or its own investigation, due diligence and the recommendations of investment professionals whom the investor has engaged for that purpose. 

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