Byron Donalds explains why young voters are moving towards the conservative movement
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Trump's tariffs and the tax bill are splitting the stock market. Here's the playbook for investors, according to Morgan Stanley.
Trump's policies are splitting the stock market, Morgan Stanley says. The bank said it believes Trump's tariffs and tax bill are splitting parts of the market in half. It says there are a handful of things for investors to look for when deciding where to put their money. President Donald Trump's policies are splitting the market into distinct camps, Morgan Stanley says. Lisa Shalett, the chief investment officer of the bank's wealth management arm, pointed to the effects of Trump's tax bill and his sweeping tariffs in a recent podcast. "Now, as the impacts of the tax reform bill and global tariff implementation begin to roll through the economy, we sense that yet another series of great divides are opening up," Shalett said. Here are the splits that are emerging: 1. Consumer-facing businesses vs. B2B businesses Businesses that sell directly to consumers are more impacted by any potential weakening fo household balance sheets, a risk that business-to-business firms are less worried about. Market pros believe that tariffs could weaken consumers' spending power, as companie can pass along the cost of import duties by raising prices. Shalett added that those pressures are coming at an already critical time for consumers, pointing out that more Americans are falling behind on credit card and auto loan payments. The job market is also flashing signs of weakness, with payrolls in May and June seeing a large downward revision, while job growth for the month of July was below expectations. A weaker labor market often leads to a pullback in consumer spending. 2. Multinational exporters vs. importers Multinational exporters outside of the consumer space are facing "fewer external barriers" to sending products abroad, Shalett said, suggesting they were more shielded from the trade war. Those firms are also benefitting from a weaker US dollar, which is making their products more attractive to foreign customers, Shalett added. Multinational firms are also typically more capital- and research & development-intensive, she said. That also positions them to benefit more from the tax benefits outlined in the "One Big Beautiful Bill," which creates favorable tax treatment for domestic R&D costs. "So, with this new structural division emerging, global stock selection is more important now than ever," Shalett said. Here are some characteristics of the companies investors should be leaning toward, in Shalett's view: Multinational non-consumer exporters. Tailwinds for these companies should continue, Shalett said. Select tech, financials, industrials, energy, and healthcare stocks. Stocks in these areas could benefit from some of the policies included in Trump's tax bill, which could lead to upside surprises in earnings and cash flow. Stocks that aren't "overhyped." International stocks, commodities, and energy infrastructure. Companies in these areas could help an investor diversify their portfolio, she added. Sentiment has shifted slightly more bearish in the last week, with Trump doubling down on tariff threats and markets digesting weaker-than-expected economic data. Goldman Sachs, Evercore ISI, Stifel, Pimco, and HSBC are among the firms that have recently flagged the risk of a stock correction or advised investors to rethink their portfolio allocations. Read the original article on Business Insider Sign in to access your portfolio
Yahoo
10 minutes ago
- Yahoo
The president doubled down on his claim that the issue was a Democratic 'hoax' with an added expletive.
Vice President JD Vance has denied hosting a strategy dinner to discuss the Epstein crisis as Donald Trump dismissed the ongoing scandal as 'bulls--t.' Hours after reports emerged that Vance was expected to meet on Wednesday night with top Trump officials to coordinate a plan to deal with the ongoing firestorm over sex trafficker Jeffrey Epstein, the vice president rebuked the story as 'fake news.' The denial came during an Oval Office event with Apple chief executive Tim Cook, where Trump touted billions of dollars of new investment from the tech company.
Yahoo
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GOP Rep. Mocks Party's Hypocrisy Over Texas Gerrymandering Chaos
In a brutal tweet post on Wednesday, one Republican member of Congress has called out his own party's hypocrisy in blasting Texas Democrats for leaving their state. Dozens of Democrats left Texason Monday to deny Texas Republicans a quorum to vote on a newly gerrymandered map that would add five Republican-leaning seats to the House of Representatives. But where a lot of Republicans saw opportunity, Rep. Thomas Massie (R-Ky.) saw hypocrisy — especially since House Speaker Mike Johnson (R-La.) suddenly canceled House votes last month and sent lawmakers home early for five weeks to avoid a vote on releasing files connected to sex offender Jeffrey Epstein, a former friend of President Donald Trump. Despite Johnson's very public efforts to sweep the scandal under the rug, Massie and Rep. Ro Khanna (D-Calif.) have introduced a bipartisan resolution calling for the release of files. After Republicans criticized Texas Democrats who left their state to prevent the passage of a gerrymandered map, Massie apparently wondered why they were OK with lawmakers ditching Washington, D.C., to avoid a vote on a topic Trump has tried to downplay. Massie made his thoughts known on social media with a tweet that compared 'Democrats leaving Texas to protect their district' to 'Republicans leaving D.C. to protect the Epstein files,' with Johnson's head superimposed over the image of a driver in a car meant to represent Republicans. Some people saw Massie's post as a sign that he was just a D-D-Democrat in Republican clothes. But Massie pointed out just how conservative he is in his response. Related... Texas Democrats Evacuate After Bomb Threat At Chicago Hotel Mike Johnson Shuts Down House Early To Block Vote On Jeffrey Epstein Files Rising Dem Star Talks Texas Gerrymandering Chaos: 'You Don't Beat A Bully By Playing Dead' Obama Slams Texas GOP's Gerrymandering Plot As 'Power Grab'
