03.23.18 Open for Business Market Wrap Up With Tom And Shane [Listen]
The recent signing of the Omnibus Spending Bill signed by President Trump on Friday was a hot topic with listeners.
Since it’s an Omnibus Bill and not a Federal Budget that gives President Trump the option to do whatever he wants with the money regardless of where the money is directed in the bill. Trump has the option of modifying it if he sees fit.
We also covered more on the tariffs and government spending. Trump announced $80 billion in new tariffs directed at China and they are expected to retaliate with $20 billion in increased tariffs on our agricultural imports.
The fear of tariffs, coupled with the Federal Reserve increasing the interest rate to 1.75 percent, the drop in Facebook Stock, and the large spending bill sent markets running for the hills.
Ninety-six percent of everything the US imports is non-agricultural products. Fifty percent of that comes into the US duty free. That doesn’t sound exactly fair to me.
When India charges Harley-Davison a fifty percent tariff to sell their motorcycles there does that sound fair? The ripple effect of all of these events sent shock waves to other markets around the world.
Both Shane and Tom feel that the markets will recover in the coming week as people realize that there are many valuable stocks that just went on sale.
Gold, silver, and other commodities remained steady and that’s a positive sign as to the strength of the economy for the moment.
Some Final Thoughts
Now that we have a 21 percent corporate interest rate rather than a 35-40 percent rate the tariffs might be more successful than they were under Bush in 2002 or Obama in 2009.
This makes the playing field a little more level. Only time will tell as to how much the markets will be affected as everyone adjusts to these new costs.
Links to additional information about stocks, bonds, and other helpful financial information.
Listen to Open for Business with Tom and Shane each Saturday - 11AM to 2PM Mountain Time at AM 1450 KMMS in Bozeman, Montana. Call in during the show 406-522-8255 or text us at 406-266-7617