I promise that every week won’t be about tariffs, and its implications. Part of my job is to sift between the headlines, and what it is going to mean (or not) in terms of our investments. Recall a few weeks ago when the first tariffs were announced, the market got spooked, then there was a reprieve, and the markets rebounded. Always be cautious on reacting to headline news by immediately making drastic changes.
As for tariffs, on Thursday U.S. president Donald Trump signed an order that directed the U.S. Trade Representative and Commerce Secretary to study how to adjust tariff rates to match existing duties. The tariffs would be customized for each country to offset levies imposed against U.S. goods along with other non-tariff barriers to trade, including regulations, value-added taxes, and exchange rate policies. The process could take several weeks to months to complete, but officials within the administration have indicated that the investigation could be completed by April 1st, after which Trump could move to immediate implementation. It remains uncertain if there will be exemptions and the situation surrounding tariffs remains fluid. This is just a heads up, and much will occur between now and then, even if there are more tariffs.
One asset class that has done well recently, perhaps as a buffer to all the tariffs, is Gold. The easiest way to have exposure to gold is through the GLD ETF. Gold prices in terms of an inflation hedge: this is the highest its been in years, and most predict this will continue for the foreseeable future.
Speaking of predictions: I’ve got an easy one this week: It’s the 4 nations Hockey tournament. Two predictions: 1) Canada wins, and 2) fans will boo the US anthem.
Monday is Family Day in most of Canada, and President’s Day in the US, and both markets will be closed.
Don’t forget Valentine’s today, which is celebrated in approximately 60% of the world. FUN FACT: it is estimated that women buy 85% of Valentines Day Cards. Gentlemen: “don’t be that guy”!
Have a great long weekend.