Markets slid after top economic advisor to the Trump Administration, Gary Cohn, resigned. This added to the concerns Wall Street already had on rising rates and the President's steel and aluminum tariffs. Lamar Villere, Portfolio Manager of the Villere Balanced Fund, was with us to discuss the state of the markets. Trade war not good for business, but it's really bad for multi-national corporations. Villere added that small caps will be more shielded from a trade war because they are less exposed to international macroeconomic variables. The portfolio manager said rising interest rates are a bigger risk for markets than the steel and aluminum tariffs. The reason is because it is too hard to predict how other countries will respond, Villere adds. Villere is on ETF bubble watch, which he says is a crowded space. He warns that "you don't want to be in a crowded trade." He adds that these ETFs are not as diverse as people think.

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US businesses that rely on Chinese imports express relief and anxiety
American businesses that rely on Chinese goods are reacting with muted relief after the U.S. and China agreed to pause their exorbitant tariffs on each other’s products for 90 days. Many companies delayed or canceled orders after President Donald Trump last month put a 145% tariff on items made in China. Importers still face relatively high tariffs, however, as well as uncertainty over what will happen in the coming weeks and months. The temporary truce was announced as retailers and their suppliers are looking to finalize their plans and orders for the holiday shopping season. They’re concerned a mad scramble to get goods onto ships will lead to bottlenecks and increased shipping costs.
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