Many investors are worried about financial tensions between the United States and China. Over the past few weeks, both nations have talked about increasing tariffs on various products. Tariffs are a tax on goods from another country. The purpose of a customs duty tax is to both increase revenue for the government and increase manufacturing within a nation. The United States lost a considerable percentage of production to China over the past few decades.
One of the biggest reasons that President Trump won the election was his focus on middle-class families. He promised to bring back jobs to industries that were decimated by outsourcing. HCR Wealth Advisors believes that tariffs could negatively impact earnings for various companies. Investors need to be ready if the stock market declines due to tariff concerns.
Which Companies Will Be Impacted
On their facebook post, they said that some companies will be impacted much harder by tariffs than others. US Steel is an example of a company that could benefit from the tariffs. The steel industry in the United States is struggling, due to China producing a massive amount of steel, and then dumping that low-value steel across the world. It is nearly impossible for steel companies in the United States to compete with Chinese steel.
HCR Wealth Advisors recommends that investors look at a company near their yearly low. Companies at a low could signal a substantial buying opportunity.
HCR Wealth Advisors is a registered investment advisory firm that offers investment advice to people all over the country. Few people have the financial acumen to design their own portfolio, and investing is critical for anyone who wants to take their financial position to a more profitable level. HCR Wealth Advisors treats all customers with dignity and respect. The firm is in a solid position to grow in the coming years, and HCR Wealth Advisors has won various awards in the industry for their work with clients.
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