Well folks... we have now fundamentally changed our way of doing things. After discussing with several economists and politicians, most of whom know and understand these things way more than me, I have come to a few conclusions. We are now full swing into populism and nationalism. Lots of honest and true conservatives are realizing today that there is a big difference between conservatism and populism/ nationalism. Most are probably having buyer's remorse. But I digress.
In terms of the stock market, this is going to fundamentally change the way we think about the market. We are doing a 180 degree turn from globalism. No one really knows how this will affect the stock market a year from now. I have a strong feeling that these tariffs are not a negotiation tool, but rather a way to bring manufacturing back to the USA and attempt to revive the middle class. This has the potential to decrease the wealth gap that has been building for the past several decades. Bringing manufacturing back to the USA will however result in decreased consumption particularly due to increased costs. There is no way we will be able to produce things as cheaply as China, etc. even with these robots (which are still a pipe dream) as being discussed by Howard Lutnick. Interestingly with decreased consumption, it may end up saving the environment. There is likely to be a recession in the next 1 year and there is almost no guarantee that we will come out the other end better off than we are today.
My advice is to look for companies that are heavily reliant on China, Vietnam etc. to not only produce their goods, but to sell large quantities of items and short them. Companies that are less concerned with global trade will be better off. However, no one will be spared from a downturn.
