It’s always good to go to Peter St. Onge, Ph.D. for some sanity when financial ups and downs frighten us.
As the market goes up and down, mostly down, he explains that the market doesn’t reflect all companies and certainly not companies that don’t yet exist.
The formula for the tariffs isn’t what people might think. Trump took the trade deficit divided by imports, cut that in half, and you get the tariff. Trump wants companies to come to the US. He doesn’t care how countries make up the deficit but wants it done. Companies that send us double or more the number of goods aren’t taking our goods.
The logic is that he wants manufacturing back in the United States. He doesn’t care if they export less to do it.
It looks like Trump is doing more than just using tariffs as a tool to get parity. He is looking to re-industrialize. For that, he needs to slash regulations and taxes. He is trying to get that done.
Tariffs will fail if we don’t make the regulatory and tax changes. DOGE is working on the regulations, but tax cuts are in the hands of the mostly useless Congress.
It’s a good time to buy! Definitely diversify in real estate or gold to weather the storms.
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