The Truth Behind Trump's Tariffs

By Wayne Mulligan, on Thursday, October 18, 2018

Unlike many of my colleagues, my major in college wasn’t finance or economics.

Instead, I majored in East Asian Studies. And as part of my studies, I learned how to speak, read, and write Chinese.

One of the first things I learned was that, in Chinese, the word for “crisis” has the same roots as the word for “opportunity.”

I’ve kept this in mind through the years — especially when it comes to investing. You see, in the investment world, major crises often create major profit opportunities.

I was reminded of this recently, as I read an article in the mainstream press predicting that the U.S. was headed for a crisis because of President Trump’s tariffs.

Regardless of your perspective on these trade policies, one thing is sure: for investors, this particular crisis is creating major profit opportunities.

And today, I’ll show you three of them.

Two Sides to Every Trade

As Matt explained yesterday, it’s easy to make money from Trump’s trade war…

You just need to separate the “winners” from the “losers.”

Matt introduced you to a few of the companies and industries that will get crushed, but dozens of others stand to benefit enormously.

Let me show you what I mean…

You’ll Have to Dig for These Profits

China is the world’s largest consumer of soy beans. They’re used in everything from soy milk to soy sauce.

Historically, one of the top suppliers of soy beans to China has been the U.S.  But because of the trade war, China is turning to countries like Brazil.

The thing is, to meet China’s skyrocketing demand, Brazilian farmers need to increase their production dramatically. And in order to do that, they need vastly more agricultural chemicals to help grow and protect their crops.

Well, as it turns out, one of the most important suppliers of such chemicals to Brazil is a U.S. company — it’s called FMC Corporation (NYSE: FMC).

In other words, American soy bean exports might suffer — but FMC stock might soar!

This is a perfect example of how investors can take a crisis and turn it into opportunity.

Spelling “Profits” With Three Letters  

Are you familiar with the terms “American Depository Receipts” or “ADRs”?

Essentially, ADRs are foreign company shares that trade on the NYSE or Nasdaq.

Well, thanks to the trade war, many investors are looking to ADRs for profits.

As I explained in the soy bean example above, as Chinese companies seek out new trading partners outside the U.S., they need to venture into foreign markets.

As a result, many foreign companies could soon see a massive uptick in business — and a massive uptick in the price of their stock.

To take advantage of this opportunity, you should explore investing in the ADRs of foreign companies doing business with China.

To see a list of ADRs broken down by country, click here.

Profit From “Kidding Around”

As you’ve learned today, one way to profit from the trade war is to identify the companies that are directly impacted by Trump’s tariffs…

But you could also profit by identifying companies that aren’t impacted at all.

Let me explain…

As the Trump administration drew up its tariff plans, it carved out an exemption for certain goods and services. One example is Children’s Goods…

Children’s products like high chairs, car seats, and toys won’t be hit with U.S. tariffs, or with “in-kind” tariffs from China in retaliation.

These products generate billions of dollars in sales each year — especially for major retailers like Walmart (NYSE: WMT) and Target (NYSE: TGT).

Buying shares of either company could help you take this “crisis” and turn it into a profit opportunity.

The Truth Behind Trump’s Tariffs

Today you learned about three ways to profit from Trump’s tariffs.

But we just scratched the surface.

You see, despite the mainstream media’s desire to paint these trade policies as “clueless,” some of the brightest minds in economics are behind these bold initiatives.

Trade wars are like a game of chess, and these tariffs are just a first move. There’s a bigger strategy at work here — a strategy meant to return American manufacturing to its position as a global leader, and to put millions of blue-collar Americans back to work.

And if you play it right, it’s a strategy that could put life-changing profits in your pocket.

We’ll reveal more in Matt’s article next week — so keep an eye on your inbox on Wednesday, October 24th at 11:00 AM Eastern.

And in the meantime, please click here to let us know what you think of Trump’s bold plans.

Happy investing!

Best Regards,


Founder
Crowdability.com

Comments

If you enjoyed this article, subscribe to updates:

Sign-up today and you'll receive our daily insights on early-stage investing, as well as our FREE "Equity Crowdfunding Action Kit" – where you'll learn:

  • The Ins & Outs of Equity Crowdfunding
  • A step-by-step path to get started
  • Tips from dozens of Venture Capitalists
subscribe to updates

Thank you for subscribing!

Tags: President trump Tarriffs

Share This:
comments powered by Disqus