Impact of the Trade Dispute
The current trade dispute, particularly the tariffs imposed under the US government of Donald Trump, has significant repercussions on global markets. However, this situation also presents opportunities for certain stocks that may be resilient or even profitable.
Stock Market Reactions
The announcement of high tariffs led to significant losses on the stock exchanges. The DAX fell by over 17% in a short span of time, while the Dow Jones rebounded strongly after a tariff pause. This volatility highlights the uncertainty in the markets.
Energy Commodities
Oil prices have plummeted, driven by concerns over a trade war. The price of Brent oil fell by over ten dollars per barrel. This could benefit companies that profit from lower energy costs.
Global Trade Flows
The trade dispute affects the global economy and could lead to a redistribution of trade flows. Companies that can adapt flexibly to these changes may gain advantages.
Potential Winners
- Companies with Local Production: Firms that produce in the USA or in countries with low tariffs could benefit from the tariffs, as they are less exposed to import duties.
- Technology Companies: Major tech companies with strong brands and patents may be more resilient against trade disputes. The Nasdaq 100 has recovered after a tariff pause.
- Energy Companies with Low Costs: Companies that can efficiently manage their energy costs benefit from the lower oil prices.
- Diversified Supply Chains: Companies with diversified supply chains that are less dependent on the affected markets may be less impacted by tariffs.
Investment Strategies
Investors should diversify their portfolios, respond flexibly to market changes, and adopt long-term perspectives to benefit from resilient companies. A webinar with Lars Erichsen offers additional insights into specific stocks and strategies for risk mitigation and opportunity maximization.