Remember the old Karate Kid movie? Mr. Miyagi teaches his young charge patience by having him detail a car: Wax on. Wax off. Wax on. Wax off.

That’s what the last couple of weeks have felt like: Tariffs on. Tariffs off. Tariffs big. Tariffs small. Chinese tariffs huge. Other countries? Still not sure.

The stock markets have been sharply up and down with each iteration, as well as rumors that President Trump would like to fire Jerome Powell, the chairman of the Federal Reserve. Markets up. Markets down.

Grocery prices have gone up—not down. Prices are cars are expected to go up significantly—as soon as we can figure out exactly what parts are American made and which are not. Computers and cell phones are exempt from tariffs for now. But that may change. Tariffs on. Tariffs off.

A number of leading economists believe what’s happening with these policies will plunge the US into a recession. Some believe that will drag down the rest of the free world.

However, there will be opportunities for some industries and players within them to succeed and perhaps even thrive in various economic scenarios. The problem is when things change so dramatically on an almost daily basis, it’s nearly impossible to develop a coherent strategy.

If things go up, we can do X. If they go down, we can do Y. But if they go up and down like a steep roller coaster, we’re likely to wind up with an upset stomach from all the twists and turns.

Human beings–like the stock market—don’t like continuous uncertainty. We need to develop a feeling for the bigger picture so we know what actions to take and what to avoid.

Those organizations that can help provide some sense of terra firma do a great service to their customers. Those that just wait for things to settle down may wind up needing more than an airsick bag.

Let us help your business rise to the top.

linda@popky.com
(650) 281-4854
www.leverage2market.com