Navigating Market Uncertainty: Insights from Lori Calvasina and Jeff Kilburg
On a recent episode of CNBC’s “Power Lunch,” RBC Capital Markets’ Head of U.S. Equity Strategy Lori Calvasina and KKM Financial’s CEO and Chief Investment Officer Jeff Kilburg shared their insights on navigating market uncertainty and the potential impact of the next round of tariffs.
Market Uncertainty: A Common Theme
Calvasina and Kilburg both agreed that market uncertainty is a common theme in today’s financial landscape. Calvasina highlighted the ongoing trade tensions between the U.S. and China, as well as geopolitical risks and interest rate concerns, as key sources of uncertainty.
Tariffs: The Next Round
Turning to the topic of tariffs, Kilburg expressed concern about the potential impact of the next round of tariffs on U.S. businesses and consumers. He pointed out that while some companies have been able to absorb the cost of existing tariffs, the next round could be more difficult.
Impact on Businesses
- Higher costs: The next round of tariffs could lead to higher costs for businesses, particularly those that import a significant amount of goods from China.
- Supply chain disruptions: Tariffs could also result in supply chain disruptions, as companies scramble to find alternative sources for goods or components.
- Reduced profitability: The combination of higher costs and reduced profitability could force some businesses to cut back on investments or even lay off workers.
Impact on Consumers
- Higher prices: Consumers could see higher prices for a wide range of goods, from electronics to clothing, as companies pass on the cost of tariffs.
- Reduced choices: Tariffs could also lead to reduced choices for consumers, as some companies are forced to limit their product offerings due to higher costs.
Global Impact
The impact of tariffs is not limited to the U.S. market. Kilburg noted that other countries could also be affected, particularly those that are heavily reliant on global supply chains. He pointed out that any disruption to these supply chains could lead to reduced economic growth and increased inflation.
Navigating Uncertainty
Despite the challenges presented by market uncertainty and tariffs, both Calvasina and Kilburg offered some advice for investors. Calvasina recommended focusing on companies with strong balance sheets and solid growth prospects, while Kilburg emphasized the importance of staying diversified and remaining nimble in the face of changing market conditions.
Conclusion
The ongoing trade tensions between the U.S. and China, and the potential impact of the next round of tariffs, continue to cast a shadow over the financial markets. Businesses and consumers could see higher costs, reduced choices, and even supply chain disruptions as a result. However, by focusing on companies with strong fundamentals and remaining diversified, investors may be able to navigate these uncertain waters and position themselves for long-term growth.
As always, it’s important to remember that investing involves risks, and it’s essential to consult with a financial advisor before making any investment decisions.
