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  • Julie Skye

Naw...Tariffs won't really happen, will they?

The topic of tariffs and the reality they typically increase prices has been hanging over the market's head for months. Why? Higher costs can act as an anchor on a slow-growing-economy. No one has any idea what any of the players in this "game" will do as they negotiate through this process.  There simply is no trust, and that is the only antidote for a market with indigestion...one that wants more certainty before it can move higher.    


Today's headline; "Trump Imposes Steel and Aluminum Tariffs on The European Union, Canada and Mexico" jangled markets today and made retaliation by our "friends" certain.


It is now more than simply a tariff on a range of American products like Kentucky Bourbon or Harley-Davidson Motorcycles that were originally placed on our neighbors across the pond. Mexico and Canada were given a temporary exemption from tariff's, but today that changed. Tariffs of 25% on steel and 10% on aluminum are set to take effect at the end of Thursday...on imports from our three largest trading partners. You and I will pay higher prices if these tariffs go into effect.  


Today's red numbers are only part of the story. Over the last 3 months I've been quietly "cleaning up" portfolios by selling funds that no longer fit. If you owned Versus Capital Real Estate, Stone Ridge Reinsurance Fund, and Pioneer Insurance Interval fund,  you've received a trade confirmation from Schwab that they have been sold. In addition, there have been a number of bonds you've held for years that are now reaching maturity. The result of these stock trades and bond redemptions is you have more cash in your money market fund that is acting like a life jacket...helping keep your portfolio afloat.


In my last "brown paper" mailing in May clients received an Agenda that outlined how I'm spending my time. My focus this Quarter has been finishing your Investment Policy Statement (IPS), selling funds that no longer work for you and collaborating with my team at First Affirmative. I'll be working with each of you BEFORE trades are placed to ensure you are comfortable with the funds I' want to use as we build out your Model Portfolio. Know that buying during down markets sets up good returns in the coming years. It just is not very fun to do!


To keep you looking past ugly markets, I've attached our Agenda for the 3rd Quarter.  Please take a few minutes to open it, think about the questions I've posed and jot down your thoughts for our next meeting. 


As well, please visit https://www.skyeadvisors.com/ to see what I'm thinking...especially on down days. You'll also find resources there I hope you find interesting and helpful.


As the evening news fills your living room with bad news and your email box fills up with nerve-wracking headlines, count on me to expand your perspective to see the changes the coming years will bring. I believe we're entering 4th industrial revolution in which new technologies will merge the physical, digital and biological worlds. All disciplines, economies, and industries in this "second machine age" will bring innovation and disruption to our lives, and your portfolios.  Today we are seeing the downside of many kinds of disruption. My job is to bring you the opportunities that may be hard to see right now: trust I will make these down markets work for you. 


Call or email often: Skye Advisors was formed to give me the freedom to communicate freely and to focus on your unique financial needs. I value your questions, concerns and sharing how your portfolio changes will fall into place. 



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(918) 408-7981  |  info@skyeadvisors.com

(918) 408-7981  |  info@skyeadvisors.com

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