So what now? Tariffs and strategy charges?

[James48843]

Now that the Supreme Court has ruled on the majority of tariffs, what now?

Is it likely that the “I” fund will benefit from the ruling? I’m thinking domestic stocks will have to reassess the impact on their business models- but I am also thinking internationals look better and better.

Is this a good time to move out of S&P (C fund) and add more into I fund? I’m sitting at 30% in each, and I’m thinking I may move 10-20% more away from C and into I at this point.

What do YOU think will do better in the next six months? C? S? Or I?

 

[nasa1974]

Now that the Supreme Court has ruled on the majority of tariffs, what now?

Is it likely that the “I” fund will benefit from the ruling? I’m thinking domestic stocks will have to reassess the impact on their business models- but I am also thinking internationals look better and better.

Is this a good time to move out of S&P (C fund) and add more into I fund? I’m sitting at 30% in each, and I’m thinking I may move 10-20% more away from C and into I at this point.

What do YOU think will do better in the next six months? C? S? Or I?

Great question.
Maybe what individual stocks might be worth taking a chance on.
My guess is that there will still be a lot of uncertainty until the choppy water settles. Too many questions still hanging out there.

 

[TommyIV]

Well, if the I-fund outperformed with tariffs in place, is it too simple to think they will underperform if tariffs are taken off the table? You mentioned in the Migration to the I-fund thread that "people understand the dollar is getting weaker around the world, and it will take diversification outside the USA in order to get decent returns." Do tariffs contribute to the weakening dollar? Or will lowering the cost of business outside of the U.S. (tariffs removed) lead to an influx of dollars in foreign markets, weaking the dollar further?

I'm not sure of the answer right now, but going off market reactions today, the I-fund welcomed the news.

I too will vote the I-fund. But I am willing to be swayed. I can imagine an argument for the S-fund when I think of smaller companies reducing their import costs.

 

[tsptalk]

Good

Stick with the trends, or speculate on a breakout?

Also, the average drawdown in the S&P 500 during mid-term election years is 18%. Maybe patience is the answer?