Tuesday, June 19, 2018: It Was a Blood Bath Out There, But…

Trade Wars Are Upon Us

DOW -287.26NASDAQ -21.44SP500 -11.16NYSE -69.66

Portfolio Winners: AMZN, T
Portfolio Losers: BA, CAT, RTN

Here’s the deal. Trump is pushing for a trade war with China. Say what? Like, is he for real?

First off, the biggest consumers in the world are Americans, simply because we are a consumerist society, and we love to spend money on new gadgets, new cars, new homes, etc, etc…

Secondly, China has the biggest workforce in the world. Well, this is a foregone conclusion, being that China is a nation of 1.3 billion people. And their workforce is the biggest by far. Keep in mind that many U.S. companies use Chinese labor to manufacture their products, because it’s cheaper and goes to the bottom line, more profits. So, Americans aren’t going to compete with that any time soon.

So, there’s naturally going to be a trade deficit, and creating 25% tariffs is only going to do one thing. It’s going to trickle down to the American consumer in the form of higher prices.

There’s a part of me that thinks all this talk about trade wars is a bunch of hot air, another Trump maneuver that keeps Trump in the spotlight, good or bad, and he is the king of grandstanding!

Warren Buffett has said that he isn’t worried about all this trade war talk, simply because all the countries of the world thrive on trade, and if Trump is going to make things difficult for China and other countries, they’re just going to take their business elsewhere, and the U.S. will continue to become more isolated and out of the big picture.

Portfolio Winners

Amazon (AMZN)

Amazon offers a lot for its Prime Members, and now they can get discounts for certain items at Whole Foods Market

See also: Amazon Prime Members to Get Extra Discount at Whole Foods

With Prime Day 2018 coming soon in July, Amazon will once again rake in the revenue with special deals for Prime Members.

finviz dynamic chart for  AMZN
AT&T (T)

Surprisingly, AT&T bounced back today when most of the stock market was in the red. I’d said it’s a bounceback from the merger news to acquire Time Warner. There’s still a lot of questions as to how this merger will work. It makes AT&T one of the most indebted companies in the world, having bought DirectTV back in 2014. And on the negative side, AT&T’s core business is slowly shrinking.

I’m going to be doing more research on AT&T and following the developments closely, to see if I will hold on long term or if I will eventually cash in my profits.

finviz dynamic chart for  T

Disclaimer: The content provided here is for information and entertainment purposes only. It is not intended as an offer or solicitation to purchase any investment. And this material should not be taken as investment advice, since investors’ needs and strategies may vary. Investing in equities is subject to extreme volatility.
Trade at your own risk.

More Investing Thoughts

Stock Trading
Tuesday December 4, 2018 by Carlos Rull
Filed as: Money, Trading Notes
Trading Setup
Monday December 3, 2018 by Carlos Rull
Filed as: Money, Trading Notes
trading setup
Monday November 26, 2018 by Carlos Rull
Filed as: Day Trading
Trading Setup
Sunday November 25, 2018 by Carlos Rull
Filed as: Money, Trading Notes
Day Trading Setup
Saturday November 24, 2018 by Carlos Rull
Filed as: Money, Trading Notes



Carlos Rull

Carlos Rull is a musician living in the San Diego area. His interests include Yoga, Eastern Philosophy, Zen Buddhism, and Gardening. He plays drums, piano, and composes New Age & Ambient music, and his albums are available on iTunes and Amazon.com.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.