Canada is looking at imposing taxes on major commodities it exports to the United States-—including uranium, oil and potash—if the incoming Trump Administration carries out a threat to impose 25% tariffs on Canadian exports.
What you need as an investor and what your portfolio needs is a road map to the likely events of the beginning of this new administration. And a take on what those events are likely to mean for the financial markets–and the prices of stocks and bonds. And recommendations on what moves to make to respond to the events of the first 100 days of a Trump Administration. Which is what this Special Report is all about. Here /i’ll give you an investor’s calendar to the first 100 days of Trump; a run-down of the likely effects on the financial markets of the events in the first 100 days; and recommendations for moves that you should make with your portfolio.
U.S. consumer credit rose by $19.2 billion in October, smashing through the $10.1 billion consensus forecast. And surging from $3.2 billion in September, according to Federal Reserve data released Friday. One in three Americans are stockpiling daily necessities like toilet paper and non-perishable food out of fear that President-elect Donald Trump’s pledge to add tariffs to imported goods will lead to higher prices, according to a new survey by CreditCards.com
Today’s video is What if the economic consensus on tariffs is wrong? It would be really bad news for stocks. The current consensus among economists is that tariffs will be inflationary as companies pass on rising prices to consumers. However, as Nir Kaissar recently wrote in an opinion piece for Bloomberg, this may not be correct. He used McDonald’s as an example. In February, McDonald’s CEO Chris Kempczinski said that the fast food restaurant has been losing low-income customers–houseold income of $45,000 or less– as the cost of its meals has risen. The price of a Big Mac, for example, has risen 25% since 2019, even though the price of raw materials has not risen at that rate. The operating margin at the company gone up and Wall Street expects that to continue, even as the company has lost customers. The company announced that they’d be offering a new, low price menu in an effort to retain a larger low-income consumer base. If more companies go in the direction of cutting costs to retain customers rather than passing on the cost of tariffs to consumers, Wall Street will be in for a big, unwelcome surprise in earnings since the current analyst consensus looks for operating margins to continue to climb in 2025 and 2026. 2025 is sure to come with volatility and uncertainty until we have a better idea of how high and far reaching the tariffs will be, and how companies will respond to them.
