The idea of an import tax began to weigh on the feeling of investors in March, when President Trump established his initial plan to target Canada, Mexico and China. Stocks tumbled, with the S&P 500 (Snpindex: ^ GSPC) And Nasdaq Composite (Nasdaqindex: ^ xicic) Both temporarily slip into the correction territory. The indexes then recovered land in the hope that the president, when the full plan announces, would adopt the restrictions.
But when the “liberation day”, as Trump calls it to reflect the concept of economic independence, rolled on April 2, the prices announced were deeper and wider than expected. They have covered countries around the world with a reference rate of 10% – and Taiwan countries in Switzerland have faced with tasks of more than 30% on their goods intended in the United States
The result? The S&P 500 and the NASDAQ Composite have dropped the most since 2020 during the negotiation session after the news, while investors were concerned about the impact of prices on the profits of American companies and the economy.
It is important to remember that, although these prices punish producers of goods, those who really pay the tasks are American companies and consumers who buy them. So, this is clearly a difficult time for investors in American actions, but the good news is that there are movements that you can do now to protect your wallet. Consider three.
Currently, you may speak or think about the amount of money you have lost in the past few days – but you have only lost if you have sold a price lower than your purchase price. If you always hold your stocks, even if they have tumbled in proportions to which you prefer not to think, you I haven’t lost a penny. And that is why it is particularly important to maintain your positions at the moment.
In short, don’t sell.
If you have well -established companies – the technology giant Nvidia to the consumer player Walmart – Take a look at their performance during the difficult times spent and in the years to follow. In most cases, you will see that they have continued to recover and win. And even many younger and risky players can also bounce back over time. We can also see the positive trend of S&P 500, Nasdaq and the industrial average Dow Jones over the years. History therefore shows that time has always favored investors who buy and hold in the long term.
And that means, unless you have completely lost confidence in a business and want to reassign money, hang and wait for recovery.
Prices are not excellent news for an American company, as most depend on a certain degree of importation. But some companies can benefit from it in a particular way – and this has to do with competition. Two good examples are electronic commerce players Amazon (Nasdaq: Amzn) And Etsy (Nasdaq: Etsy). The two were faced with significant competition from its competitors in China, such as fasting fashion cases Shein.
Trump prices eliminate tax exemption from goods of $ 800 or less, which means that American customers will soon pay more when they will order articles to these foreign competitors. This can encourage them to turn to Amazon and Etsy, sellers who also focus on low prices.
In fact, Amazon has even recently been introduced in beta Amazon Haul form, a service with articles for $ 20 or less – this and the rates could stimulate Amazon competitively in the coming months.
As for Etsy, not only will it potentially benefit from prices concerning its competitors, but the prices could have a limited impact on Etsy itself because of the business model of the company. Etsy provides a platform to the sellers to sell handmade goods-it does not matter, does not do or do not send these goods itself. In addition to this, Etsy sellers can win because the company says that these sellers generally get their supplies near their home.
Finally, to guarantee the yields, no matter what the market does, consider adding to your business assets that have committed to increasing their dividend payments and having the financial strength to do so. How do you find them? Looking at the list of kings of dividends.
These companies – as Coca-Cola (Nyse: ko),, Johnson & Johnson (Nyse: jnj)And Abbott laboratories (NYSE: ABT)To name only a few – have raised their dividends for at least the last 50 years. This shows that enriching shareholders are important to them. And a look at their available cash flow – of $ 4 billion in the case of Coca -Cola at $ 18 billion and $ 6 billion in J & J and Abbott, respectively – shows that they have the resources to continue on this very path through difficult times.
Passive income is something that you will appreciate if the market slowdown continues, because it limits your losses, and when the market is recovered, as is always done in the past, these payments offer you a dose of additional growth. So these players are with persistent leaves, those you want to keep in flourishing and difficult markets – and today, buying some of these actions is an ideal way to protect your wallet.
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John Mackey, former CEO of Whole Foods Market, a subsidiary of Amazon, is a member of the board of directors of Motley Fool’s. Adria Cimino has positions in Amazon. The Motley Fool has positions and recommends Abbott Laboratories, Amazon, Etsy, Nvidia and Walmart. The Motley Fool recommends Johnson & Johnson. The Motley Fool has a policy of disclosure.
President Trump’s prices have arrived. 3 things to do to protect your wallet. was initially published by the Motley Fool
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