The Wealth Signal – Issue #1

🧠 The Big Signal

Trump's Tariffs: What They Are & Why You Should Pay Attention (Even If You Hate Politics)

Former President Donald Trump has floated plans to reintroduce major tariffs if elected in 2024—including a 10% universal tariff on all imports and a possible 60%+ tariff on Chinese goods.
This isn’t just political posturing—this is an economic strategy that could ripple through markets, prices, and your portfolio.

Let’s break it down.

🧩 What Are Tariffs?

Tariffs are taxes on imports. When the U.S. puts tariffs on foreign goods, it makes those products more expensive in America. The idea is to:

• Encourage Americans to “buy American”

• Protect U.S. industries from foreign competition

• Punish trade partners (like China) for “unfair” practices

But there's a catch...

💥 Tariffs Can Raise Prices for Everyone

While they can help some domestic companies (like steel or manufacturing), tariffs also make everyday goods more expensive.
You may feel it in:

• 🛒 Higher prices on electronics, clothes, appliances

• 🏗️ Slower business investment and hiring

• 💸 Supply chain disruptions that hit your wallet

📉 What Could This Mean for Markets?

Historically, tariffs have triggered:

• 🟠 Short-term market dips (due to uncertainty)

• 📉 Pressure on global trade stocks (shipping, multinational brands)

• 📈 Boosts in some U.S.-centric companies (industrial, materials, “Made in USA” brands)

In 2018, when Trump initiated the China tariffs, the S&P 500 dropped nearly 20% over several months before recovering.

If these new tariffs go into effect:

• Some companies will win big

• Some will suffer

• And everyday investors need to watch where the money flows

📈 3 Stock Ideas for This Market Dip

Markets have been wobbly lately—and that creates opportunity. Here are three stocks that may benefit from either:

• U.S. manufacturing focus

• Domestic consumer strength

• General resilience in uncertain markets

1️⃣ Caterpillar (CAT)

🛠️ Why: A major U.S. industrial player. Domestic infrastructure spending and protectionist policies could favor companies like CAT.
💡 Bonus: Pays a reliable dividend.

2️⃣ Dollar General (DG)

🛒 Why: If tariffs push prices higher, value retailers like Dollar General may see more foot traffic as consumers seek cheaper alternatives.
📉 It’s also down from highs, offering a better entry point.

3️⃣ Lockheed Martin (LMT)

✈️ Why: Defense spending tends to rise with geopolitical tension. Trade wars can spill into military posturing, making LMT a solid defensive pick.
🟢 Historically strong performance during economic uncertainty.

🔚 The Bottom Line

Whether you love or hate the policy, tariffs can impact your finances in big ways. Expect:

• Higher consumer prices

• Market volatility

• Shifting winners and losers in the stock market

Keep an eye on the headlines—but more importantly, watch the economic signals behind the political noise.

✅ What to Do Next

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• Stay tuned next week—we’ll dive into how to build credit the right way without falling for traps

Stay smart,
— The Wealth Signal Team