Q: As irrational as it seems,Trump may impose tariffs soon after his inauguration just to appease his voting base.A likely “knee jerk “reaction would send these stocks lower.Do you think this would create a buying opportunity?Are there others in your portfolios that could be affected? Some of this uncertainty must be already be priced in,but CLS seems immune to this.
5i Research Answer:
It is possible markets 'react' again, but in many cases they have already. Trump has already walked back comments to 2% a month rather than 25% one time. Industrial stocks such as ATS, MG, MRE etc. could still be impacted. CLS has benefited from stong growth, good partnerships and its AI connection. Oil could rally as we highly doubt Trump is going to tariff 4 million barrels a day of imports.