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Thursday, February 13th
I refuse to join any club that would have me as a member.
-Groucho Marx
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Markets Today
🌏 Asia-Pacific: Mixed
🇪🇺 Europe: Down
🇺🇸 United States: Up
🛢️ Oil: Down
⚡Crypto: Up
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Major Market Events
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US PPI comes in hot in latest sign of inflation pickup
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US weekly jobless claims fall in sign of stable labor market
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Reddit stock tumbles after user numbers fall short
🤔 My Thoughts
President Trump has announced that he will begin reciprocal tariffs TODAY.
This means that any country that charges us to export products to them, will now face the same charge when they export products to us.
Honestly – and you know we generally avoid politics – but why the heck haven’t we been doing this already?
This isn’t starting a new trade war or disrupting a free market – it’s merely evening the playing field in a trade war that’s already being waged on us!
So we are in favor of this tariff at least – and the markets seem to agree, because unlike with previous tariffs they are up today.
But this still will have an impact on the market, creating some winners and losers. Obviously US Steel and big US manufacturers stand to benefit…
But what are the less obvious stocks to take a look at?
Well one of our favorite ways to answer that question is to look at what elite insiders have been trading ahead of this announcement.
- Julie Johnson, a House Democrat who trades quite actively, has been buying up shares of Boeing (NYSE: BA) – the scandal battered stock that may benefit from a domestic manufacturing push
- She’s also buying up Dollar Tree (NASDAQ: DLTR) and Dollar General (NYSE: DG) low cost retailers that rely on Chinese imports – but she may be thinking that the tariffs won’t impact these lower dollar consumer goods as much as other imports like steel and aluminum
- Gilbert Cisneros, another House Democrat, has made three purchases of Lantheus Holdings (NASDAQ: LNTH) a $5 billion market cap US pharmaceutical company (which is small compared to Big Pharma titans) and this could be a signal that US pharma stands to benefit from a tariff environment.
What do you think? As always, respond to this email with your thoughts on tariffs and the investment ideas we’re covering.
