Stake’s Post

Transcript

Trump's tariffs and stock market mayhem. Let's break it down. Firstly, the US economy is slowing down, and there are three key indicators that signal this. First of all, US job growth. Payroll numbers were lower than expected #2 retail sales have dipped. Consumer spending. So going out for dinner or buying a new pair of pants. Inflation is still high. So although the Fed have increased interest rates, it makes the cost of borrowing more expensive. It means people are spending less, and it means there's less business investment. Then we've got Trump's tariff policies. These are impacting Canada, Mexico and China and are expecting to increase business costs and disrupt supply chain, especially in tech and manufacturing. Increased costs means reduced profits. As for the indexes, the Dow, NASDAQ have all seen their prices drop. But why? Tariff tensions and global trade uncertainty are weighing heavily on stocks. Interest rates are steady, but a slowing economy means that investors are pulling back and taking their profits. Is it time to look at more stable investments such as real estate? It tends to be less impacted by day-to-day market swings and it gives the opportunity for earning income and capital appreciation potential. Rented properties that generate consistent returns carry very low risk because at the end of the day, people need a place to live. So how are you reallocating your portfolio?