Headlines around global trade are having some effect on the markets. Stock prices generally follow corporate earnings over the long term, so here is our view on tariffs:
- In a world with slower global trade due to high tariffs, declining corporate earnings would most likely weigh on stock prices.
- By contrast, in a world with low tariffs fostering robust global trade, it becomes easy to imagine higher earnings and prices.
Hopefully, this battle will be resolved soon. Meanwhile, FAM Funds’ holdings impacted by tariffs have been implementing plans to lessen the effects.
Despite trade conflicts, FAM will continue to follow our business-first approach as we conduct in-depth, independent, firsthand research.