Free Preview
The 7investing Key Takeaway
“Tariffs” has been the terrible T-word of 2025; the one that has instilled fear and anxiety in investors all year.
Red pens have been marking down the profit forecasts of any companies who rely on China for manufacturing. Those exposed to textiles or semiconductor components have gotten a particularly scrutinizing stare.
Many of those companies are even reorganizing their supply chains to now purposely avoid China. Whether or not the reciprocal tariffs stick, this is still a wake up call to qualify secondary suppliers.
In the meantime, these concerns about tariffs and international trade agreements are giving investors a unique opportunity: to buy the best-in-class retailers while they’re selling on the cheap. The “buy low” mantra of long-term investing is on display in the retail sector’s store window, who are currently priced at very attractive valuations due to overly-pessimistic future expectations.
That’s why I’m taking another bite of….
