Stock markets ( ^DJI , ^IXIC , ^GSPC ) are losing ground following the Trump administration's confirmation of new tariffs on imports from Mexico, Canada, and China starting February 1. Villere & Co. Portfolio Manager Sandy Villere shares his investment strategy on Market Domination amid these trade developments.
Villere recommends investors pivot toward domestic small ( ^RUT ) to mid-cap ( ^SP400 ) companies. He explains that the inflationary nature of tariffs will likely strengthen the US dollar ( DX-Y.NYB ), creating challenging conditions for large multinational corporations.
"We want to be a little bit more defensive and buy what's cheap. So we're avoiding the larger-cap, very expensive technology stocks," he explains, adding, "When things are priced to perfection, it gets to be a challenge."
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This post was written by Angel Smith