Ep 67: The New Trump Trade

Ep 67: The New Trump Trade


The Fireworks Set Off By The Trump Tariffs and Their Impact on Earnings, Inflation and the Market Going Forward



On this week’s podcast, Tematica’s mixologists Lenore Hawkins and Chris Versace explain what investors should be prepared for as we move into the 2Q 2018 earnings season. While the 2018 narrative started with tax reform, during the 2Q 2018 wore on it became increasingly focused on trade as tariff talk escalated among the US, China, European Union, Mexico and Canada.  With company’s ranging from Harley Davidson to General Motors, Toyota and BMW all crying uncle from the potential tariff impact, we could be in for a very different earnings season than many thought back in January. 

Current expectations have the S&P 500 group of companies delivering EPS growth between 20%-22% year over year in the back half of 2018. As Lenore and Chris point out, however, the growing number of headwinds from trade and tariffs to slowing growth, higher interest rates and the rebound in the dollar could result in more conservative guidance than the market is expecting. What could it mean if that expected EPS growth in the second half if more like 15%… well, you’ll just have to listen to the episode to find out.


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About the Author

Lenore Hawkins & Chris Versace
Lenore Hawkins serves as the Chief Macro Strategist for Tematica Research. With over 20 years of experience in finance, strategic planning, risk management, asset valuation and operations optimization, her focus is primarily on macroeconomic influences and identification of those long-term themes that create investing headwinds or tailwinds. Chris Versace is Tematica's Chief Investment Officer and editor of Tematica Investing newsletter. All of that capitalizes on his near 20 years in the investment industry, nearly all of it breaking down industries and recommending stocks.

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