Like many people, I woke up this past Friday to most of my holdings in the red. Even Gold which has been on a historic run took a bit of a tumble. I promptly checked the news and saw that Trump announced a 100% increase for tariffs on China. Welp, that explained it. But we don’t see red, we see green…or opportunity rather. It’s not often in life you get second chances, but Trump is seemingly handing us one on a silver platter. Especially if you are holding Chinese equities, this is a blessing in disguise. With Trump’s announcement of the tariff increase, he effectively reset the price of these equities and gains from approximately one month prior.
Let’s take BABA as an example. In mid-September it was trading around $165 USD before rocketing up to almost $190 in the beginning of October. Fast forward to today, it is trading around $167 USD. So, we see that the stock price has reset but what about going forward? Well, nothing has changed really. BABA still have made large investments in AI and cloud computing which will bolster their growth further. It now all comes down to how China decides to respond and if Trump is really going to go through with the tariff increase.
In other notable news, volatility is expected for SOC this week. Tomorrow there should be a ruling in the SOC vs CCC (California Coastal Commission) which will give us a definitive answer of what path we will be seeing in the near future. If the CCC win, then SOC will promptly choose option B and opt for tankers as option A (restart of the pipeline) would be dead. I’m hoping for short term upwards movement so that I can sell at least a partial amount of my position. Target price is still hovering in the high twenties to low thirties.
This is a relatively short post but it’s because I’m working on another idea for the portfolio. I’m hoping to put it out this week or the week after.
That’s it for now. Talk to you all very soon.
DISCLAIMER:
“This post reflects my own personal opinion and is for educational purposes only. It is not financial advice or investment recommendations. Please do your own research or consult your personal investment, legal, and tax advisor before making any investment decisions.”