Trade Wars, Your Bottom Line & a New Middle Space Market for Profits
The managing partner of Guggenheim Partners is predicting a 16% drop by summer end in the S&P. Donald Trump aggravates the situation with Mexico Tariff threats.
Ladies and Gentlemen the stock market correction is less about trade wars and more about an 18 year positive bull run.
Without being a stock expert think about something. Can something go up for 19 straight years in a row? Nothing is 100% accurate. At a certain point repetitive success becomes a negative statistic. The odds tilt in favor of loss. These odds apply even if loss is only one negative performance in twenty years. This is the way probability works. At one point constant success means high probability of failure.
The prediction from Guggenheim Partners Scott Minerd is the S&P should decline to its December low in 2018. This represents a 16% fall from current level. Faulty money expansion, technological innovation, and bank participation in cryptocurrency is being overshadowed.
The overshadow comes from Beijing and Washington’s breakdown. The breakdown occurred after Trump’s accusation of dishonesty from Beijing. Trump’s accusation prompted a declaration that some 200bn in Tariffs would be allowed to proceed. This represents a 25% price increase on goods originating from China. Mexico is now being threatened with a similar embargo.
The real question is, “How do you make your bottom line profitable in spite of market sentiment?”
The United States Consumer will most likely turn to domestic producers. This is the bottom line for your entrepreneurial profits. If these tariffs come into effect the Middle Space market boom that will ensue is “Made in America”. Products that manufacture in the United States will be cheaper than foreign products. If Tariffs drive foreign competition prices high demand will fall. If you can make a comparable product for a cheaper price — the American Consumer will buy it.
True less purchasing will be done. The macro economics will worsen. Public companies earnings will decline. Stock prices will sink. This does not have any affect on private companies looking to do 1mm in revenue. Trust me 1mm is a low number easily absorbed into a local US market. Tariffs do not change the fact purchases still continue. Individuals who track price trends, discover products experiencing significant price increases, and invest (or manufacture) into companies filling over priced needs will experience very good profits.
There is a double edge sword. This model is not sustainable. At some point Tariffs will be removed. If a sustainable model is not implemented at the beginning — what comes up will plummet down.
This is what it means to be a Professional Entrepreneur. Middle Space Markets are temporary gaps in markets that allow capitalization.
Under a Tariff Trade War model I would open a manufacturing business, obtain tax credits, apply for grant startup, run it until legislation is introduced by the House, and then close / sell the business abruptly when the US China Relations improve.
If you want to be a business person you must discover how to take hard earned profits and invest into sustainable models. This could be a technology application for grocery recommendation (if you were selling produce for instance) or iron ore analysis algorithms to determine steel productivity (if you were selling steel). These are examples of taking middle space profits to build sustainable businesses.
Middle Space market opportunity is available if you look. Focus on market trends, identify gaps and learn how to implement capitalization models so profits occur. Discover new technologies, current middle space markets, and more by following me on Medium or signing up for my quarterly newsletter.
To your opportunity success!
About Christopher: Christopher Knight Lopez is a Professional Entrepreneur. Christopher has opened over 7 businesses in his 14-year career. Christopher’s purpose is to take advantage of various market-driven opportunities. Christopher is a certified Master Project Manager (MPM) and Accredited Financial Analyst (AFA). Christopher previously held his Series 65 securities license. Christopher also has his General Lines — Life, Accident, Health & HMO. Christopher has managed a combined 286mm USD in reported Assets Under Management & Assets Under Advisement. Christopher has work experience in 29 countries, raised over 50mm USD for various businesses, and grossed over 7.5mm in his personal career. Christopher worked in the highly technical industries of: biotechnology, finance, securities, manufacturing, real estate, and residential mortgages. Christopher is a United States Air Force Veteran. Christopher has a passion for family, competitive sports, fishing, martial arts and advocacy for entrepreneurs. Christopher provides self-help classes for up-and-coming entrepreneurs. Christopher’s passion to mentor comes from belief that entrepreneurs need guidance. The world is full of conflicting information about entrepreneur identity. See more at www.christopherklopez.com.