TRUMPS RETALIATORY SELL-OFF
The stock market’s retaliatory sell-off is at a lasting trend or temporary correction. Today is April 4th, 2025 and my name is Joe Cantu from “Cantu Tactical Wealth Management”. Let’s talk about these trade tariffs and I’ll give you our opinion of the big question of whether they are temporary or permanent.
Let’s address this…
1. Why did the retaliatory sell-off occur?
2. Money managers deciding to sell down United States stock positions from their major pension and investment accounts from around the world were a direct response to President Trump’s tariffs. Perhaps money managers in their specific country. Did the selling.
3. It’s interesting that the world’s economist and experts have a disdain for President Trump and has led to many reports of future negative ramifications of these tariffs on global prices and goods.
4. The problem is all these predictions are useless. What is the reality? The truth is no one really knows the outcome. Everyone is guessing. Even President Trump himself does not really know the outcome but has conjectures on the positive direction for the benefits of the United Stateseconomy.
5. Uncertainty creates volatility in the stock market. However, “certainty” provides market stability and will cause the market to move up, in our opinion.
6. Negotiations change everything. Vietnam has expressed a willingness. Just two days ago to move their tariffs to 0 contingent upon reaching a bilateral agreement, Cambodia responded by reducing 19 products categories from 35% to 5%. Tariffs. What is interesting. Is by reducing the prices that reduces inflation for all countries involved.
7. There are many business categories which are exempt from US tariffs. Why is this important?
8. It’s because these companies may have the greatest possibility to pop in a rebound amidst these tariffs. Chaos. So, we also have another video that you can see which shows some of the highest growth revenue of companies in the United States. You can see the other video in the attachments below.
TARIFF EXEMPTIONS
So, let’s talk about tariff exemptions, because in the long run, people don’t realize how these exemptions will help the stocks.
1. For example, pharmaceuticals and medicines and related products are exempt.
2. Semiconductors are considered critical components in business. And not subject to impose tariffs,
3. Energy products such as imports of oil and gas and refined products are exempt from providing relief to the US oil industry, and it ensures that we do not have delivery disruptions.
4. There’ are certain metals and materials, which are excluded from tariffs,
5. Steel, aluminum, automobiles and auto parts, may already be subject to some of these tariffs but are exempt from the new impose tariffs that President Trump’s has started.
6. Lumber and copper products in construction and manufacturing area have exemptions. And finally.
7. Countries with prior trade agreements such as Canada and Mexico, have strategic exemptions. My point to all this is that when you think about it, in the long run, these stocks have the highest possibility of recovering because their earnings will not be disrupted. Likewise, they have the ability to rebound the quickest in this global market sell-off.
GLOBAL STOCK MARKET
The global stock market questions to ask yourself?
A. How long will the stock market stay down? Fear drives this question. Do you think it will go lower or do you think the market will rebound? So what companies are the best to own? Again, we have another video with some of the highest growth companies in America. And we believe these companies will rebound the quickest. But there’s basically
B. What companies are the best to own? Obvious answers are to invest in companies with products exempt from the tariffs. For example, business sectors like auto parts, a company we like is O’Reilly Auto parts.
C. And invest in some of the highest growth companies in America.
D. When should you buy or sell? Well, they say to make money you need to buy low and sell high. But the problem is when the market is low. Some people think it’s going lower and everyone is afraid, like now. As I’ve said in other videos, “uncertainty” promotes volatility. And in our stock market, “certainty” provides stability. Our decision is to remain “equity heavy” and we believe the stock market will rebound. Again, negotiations change everything.
DISCLOSURES
Any representations of stocks are for educational and entertainment purposes only and do not constitute a recommendation. Investing has “risk” of loss. You may lose money investing in the stock market and we ask that you consult with your own advisors for any financial decision. Joe Cantu, Ronald Liston and Joshua Carvalho are and Cantu Tactical Wealth Management are fiduciaries and registered investment advisors in the States of California, Florida, Georgia and Texas. We provide pure independent advice and money management.
YouTube Video
