Tune into this episode to explore the evolving landscapes of U.S. trade relations, particularly with India, and the implications of the current trade war with China. Bill Gundersen brings in-depth analysis of market trends and discusses the consequences of trade deficits, tariffs, and diplomatic maneuvers that could redefine economic power structures globally.
He’s been seen on CNBC, the Fox News Channel, and the Fox Business Channel. His articles can be found on MarketWatch, Seeking Alpha, thestreet.com, and many other places. He’s the author of the weekly Best Stocks Now newsletter and the inventor of the Best Stocks Now app. He’s president of Gundersen Capital Management. Here is professional money manager Bill Gundersen.
SPEAKER 07 :
And welcome to the Tuesday. It is the April 29th live edition of the Best Stocks Now show with professional money manager Bill Gunderson, president of Gunderson Capital Management. I’m here with Barry Kite, our chartered financial analyst. And we had a mixed open, but now everything has gone green on my screen here with the Dow up 186 points, 40,413. The NASDAQ is up 56 points. It was down just a little bit ago. It’s at 17,421. The S&P 500 is up 12. to $5,540. The bond market is about the same as it ended yesterday. The 10-year currently is at, let’s see, the 10-year 4.19. Actually, we’re down a little bit there, 4.19% on the 10-year. Gold right now is down 1%. So you’re seeing a little move away from the defensive trade into gold and over to the more growth-oriented trade into stocks. Gold is at $3,315 right now. We’ve got Bitcoin. Bitcoin is at $95,000 today. What a comeback going on there. Still $10,000 under its low today. But Bitcoin is up $670, so not a bad start to the day so far. So welcome to today’s Best Stocks Now show with professional money manager Bill Gunderson, president of Gunderson Capital Management. I don’t think anybody can argue that we’ve seen some stabilization here in the market recently. over the past couple of weeks and Barry you know as I’ve watched these earnings reports come in I’m of the opinion that maybe the analysts over rated the effects from tariffs on the economy and on individual companies I mean, yes, there are some individual companies that are in the line of fire, but overall, it’s not the end of the world that was being predicted by the Jim Cramers of the world. I mean, the market has really stabilized here.
SPEAKER 06 :
And the data is really weird. I mean, the market’s telling us, obviously, you look at the market, you’ve seen that bottoming pattern, as you’ve mentioned and called, and But, you know, when you look at some of the data, it’s really dirty from the standpoint of, you know, you’ve got, you know, a lot of these folks, you know, front purchasing things. So you haven’t seen some of the potential retail sales drop yet. You may at some point, right? It’s, you know, we haven’t seen any supply shocks, but we’re hearing that you may see empty shelves, right? So it’s a lot of this… The actual numbers are telling us one thing at this point, but some of that data could be a little dirty. That’s why it would be interesting to see these payroll numbers. I think we get ADP tomorrow and then the NARM farm payroll on Friday.
SPEAKER 07 :
Yeah.
SPEAKER 06 :
Not to mention a ton of earnings. The earnings side has been great still. I mean, we haven’t seen any issues.
SPEAKER 07 :
I remember the day Jim Cramer said on Monday we’re going to get a drop, you know, something like the 1987 drop. Right. You know, look, there’s two sides in this country, and one side badly wants the other side to fail. And the media is not divided 50-50. The media is probably 95-5, you know, anti-Trump.
SPEAKER 06 :
There’s also news entertainment in other words, right? A lot of our news, no matter which side someone’s listening to, tends to be more entertainment, trying to get eyeballs versus news versus actual news.
SPEAKER 07 :
I just see most headlines coming from certain outlets to be 99.9% negative. And, you know, I think they’re going to be proven wrong. And the market stabilizing here is pretty much a testament to that. The market’s finished on a pretty strong note yesterday. Nvidia was a weak spot. We still don’t know what Huawei’s chip, where it stands compared to Nvidia’s chip. Will China be able to do their AI training on Huawei chips instead of Nvidia chips? Gold had a good day yesterday. It’s selling off a little bit here today. But I think the big days are coming on Wednesday and Thursday when we get some really big earnings reports from Techland. Now, we’ve gotten quite a few today, but nothing really from tech, not from big tech, a couple of big industrials. We’re going to get 11 Dow companies reporting this week, a couple of already reported today. Now, the trade deficit.
SPEAKER 06 :
Meta and Microsoft tomorrow and Amazon and Apple on Thursday. So there’s four of the quote-unquote magnificent seven that still exist.
SPEAKER 07 :
Yeah, the market’s probably a little quiet today waiting for those. The trade deficit has not narrowed yet. It widened in March. To a record, I believe. But isn’t that what you were just saying? Because they’re amping up. They’re front-running, getting ahead of it, okay? And so you had $162 billion, which is about average. That’s about what we’ve been running. But it came in hotter. We were expecting $145 billion. You know, we’re one of the few countries in the world that runs a trade deficit, let alone a trillion-dollar trade deficit. And that’s one of the things that obviously is under Trump’s skin. And he’s looking to narrow that trade deficit. But it’s not showing up in the numbers yet. But with just one ship in our port, I’m going over that way today. I’m going to cross the bridge. I’ll take a look at the – I’ll give you a Wando River report tomorrow on what it looks like, how many freighters are in our port.
SPEAKER 06 :
One of the pink ones, which I think is a Chinese company, if I’m not mistaken. Yeah. I forget what the pink brand is.
SPEAKER 07 :
Yeah. Europe would never paint their ships pink. India is said to weigh Boeing orders as bargaining chip in U.S. trade talks. You know what? Listen, I see a lot of attention being paid to India. There’s more people that live in India than live in China. They surpassed China in population not too long ago. Now, I don’t know what the average income is of India versus China. I don’t know that number, but obviously there’s a lot of attention being put on India right now. And, you know, India’s been buying a lot of planes from Airbus, but as a bargaining chip, they are, at the end of the day, that’s really the bottom line, is Trump wants other countries to buy more of our products.
SPEAKER 06 :
Well, and also Besant this morning spoke at kind of a press conference or kind of early this morning. And him and the press secretary were fielding questions. And he said, you know, they kind of asked him which ones are likely to come to a deal first. And he said, you know, mentioned that the vice president being in India and, you know, that basically they were close to a deal with India, which… In reality, you think of industrial base, right, as one that could, you know, is on par, right, or could be on par with China.
SPEAKER 01 :
Absolutely.
SPEAKER 06 :
Like you said, population size, where they’re at in the world, location-wise. So there’s a lot of… I think getting a deal with them turns around and puts a good bit of, to me, puts a lot of pressure on China.
SPEAKER 07 :
And, you know, in return, India is planning to revise tariffs on approximately 8,500 industrial products. Such things as bourbon whiskey, Harley-Davidson motorcycles are among the goods targeted for reduced duty, so India could become a very, very big customer of United States goods, which would then, you know, obviously narrow that trade gap. You could also say that India is not taking the money that we buy their goods with and building up a fearsome military, right? Like China has missiles and supporting Iran and other things like this. So anyways, I mean, India, this could turn into quite a good partnership. China is also playing around with India. They’re saying we’re not going to flood India with cheap goods, which would kind of be a preemptive strike against us to flood it with cheap goods. You don’t want those American goods. Look how much cheaper our goods are. China has said they will not do that, but of course that’s what they’ve been doing for years and years and years in countries all over the world. Relations were sour between India and China. They had a border dispute up there. And now China’s trying to make good with India. As you said, I mean, that’s putting pressure on China. These ties with India between the U.S. and India. So we’ll have to see how this all works out.
SPEAKER 06 :
And Besant mentioned it today in terms of the size. If these factories are shut down, they could be a month away from literally 5 to 10 million people being laid off in China. They need to make a deal as
SPEAKER 07 :
Oh, yeah, China’s feeling the pinch. Now, when we come back, another company has stepped up to the plate and is going to build a $1 billion plant in Delaware. to ensure domestic supply of Keytruda. And, I mean, they’re keeping a list of all the companies that have announced investments in the U.S. That’s becoming a very long list. We’ll talk about that company when we come back. This is the Best Stocks Now show.
SPEAKER 1 :
Thank you.
SPEAKER 07 :
And welcome back here to the second quarter of today’s Best Docs Now show. Merck. Merck is the company building a $1 billion Delaware plant right in Joe Biden’s backyard. I doubt it. But it’s in Wilmington, Delaware, becoming the latest pharmaceutical company to boost domestic investment as industry-targeted tariffs loom. This will be a 470,000-square-foot investment. That’s bigger than my house. Biologic Center. It will comprise laboratory manufacturing and warehouse capabilities. So anyways, you know, there’s another one that you can rack up. It’s estimated to create 500 full-time jobs and roughly 4,000 construction jobs. So anyways, there you go. Canada went to Carney. The Liberals win as Trump threats fuel parties come back. And a lot of people say that, of course, when they took the poll, when the other guy was way ahead, that was against Trump. And then, of course, Trudeau decided to resign. He could see the handwriting on the wall, it seems like, that he was not going to win. And he handed it over to Carney. And Carney, it looks like that’s the winner. Canada decided to continue kind of on the course that they’re on. Earnings week ahead, okay, as you said. It’s going to be the important ones. I think it begins, does the party begin tonight? Let me see, Tuesday?
SPEAKER 06 :
I think it’s Wednesday. I know Wednesday is Meta and Microsoft, and then, of course, Thursday, Amazon and Apple. There’s still some other big names this week, too. Tonight we get Visa. You named off a bunch yesterday.
SPEAKER 07 :
Yeah, I don’t see a lot of big ones tonight. Booking.com, that’s pretty big. Visa’s pretty big. But tomorrow is Microsoft. That’s a monster. Meta is a monster. Qualcomm, Caterpillar, this is all on Wednesday. And then on Thursday, Apple, which used to be the biggest report of all, seems like these days it’s NVIDIA. tesla also is always a big one apple’s going to report on thursday and amazon amazon’s under a little pressure and you know i i didn’t see the entire story but amazon came out with something you know about the yes what right yeah so what what they’re going to do is they’re going to have a line on the on the on the uh when you when you’re
SPEAKER 06 :
ready to check out or on the cost um there’s going to be you know a line of how much of the cost is a tariff yeah and of course uh it sounds like the administration didn’t you know i think took it as a political uh you know kind of uh you know shot across the bow so it seems like a fight could be i like that idea actually you know i i think there’s a lot of people inclined to try to avoid buying things so if that’s possible on amazon yeah well i wish i wish your medical I wish your medical bill was, you know, as transparent, right? I mean, it’s like, you know, that’s the one thing that always gets me. It doesn’t matter what you’re getting done. You never know what it’s going to cost until after the fact. Okay. Telling me what it’s going to be, transparency and pricing, I’m all for that.
SPEAKER 07 :
I would just say this about Amazon. They’ve got to be in the crosshairs. I mean, they’ve gone after Google as being a monopoly. They’ve gone after Meta as being a monopoly. In my book, Amazon is the biggest monopoly of all time. Now Amazon’s going to launch their first satellites into space to compete with Starlink. So now they’re going to become an Internet provider. I think Amazon better be careful because… There’s just no question in my mind that eventually they’re going to be in front of the Federal Trade Commission with their monopolistic practices and having too many irons in the fire. I mean, they’re into telehealth now. You can book a doctor on Amazon. And it doesn’t list whether he charges a tariff or not.
SPEAKER 06 :
I mean, they’ve got Prime Video. I mean, so it’s like they compete with Netflix. They’ve got music, so they compete with Spotify and with iTunes. And that was his book was A to Z. Well, and in the press conference. At today’s press conference, they actually asked, I mean, because they talked about it for a moment, and they asked the press secretary, you know, isn’t Bezos pro-Trump? And it didn’t sound like that he’s too happy about it, put it that way. Yeah. There’s going to be more of that to come.
SPEAKER 07 :
He better be careful. Okay, now. Walmart continues with the store of the future concept. If you think about it, the changes that came from COVID are pretty profound. Just like 9-11 changed the world, COVID changed the world. More and more people now are having things delivered to their home. They’re not going into the store. They’re doing pickup or delivery. And Walmart is going to start designing their stores, right? I mean, you’re going to have a much more efficient process Of picking up your stuff. And the stores are going to be very, very modern with a lot of technology. They’re opening the first one. I like this idea. Cypress, Texas on April 30th, which is tomorrow. If you’re in Cypress. Head on down to the four-day grand opening. I don’t know if they’ve got hot dogs or anything. If there was, I might show up. The new Supercenter is a testament to Walmart’s ongoing commitment to investing in our store operations and our associates so we continue to provide exceptional service and value to our customers. Now, Walmart I don’t consider a monopoly. I mean, they’re a retail giant. Walmart is into a lot of things, but nothing like Amazon is. And, of course, Trump is trying to open up Amazon and Walmart in India to be buying from them, which would be a good market for them. But they’re going to deliver a seamless, high-quality, tech-forward shopping experience for customers. customers uh and uh that that that should be interesting i i i think walmart uh could use a big makeover uh with with all the technology we have now hymns and her surges on partnership with novo nordisk for wagovi So finally, hims and hers has pulled the plug on the compounds, which that’s going to sell the real thing. And it’s interesting that they chose Wagovi instead of Zepbound. But that obviously opens up another outlet for Novo Nordisk. Now, let’s see if Novo Nordisk is moving on this news at all. Yes, it’s up 2.7%. I think Novo Nordisk is a good candidate for the relative value portfolio. And on the other hand, HIMS is up 19.6% on that news. I just think that Novo Nordisk is a more pure play on Wegovy than HIMS and HERS. But HIMS and HERS has been a volatile stock. It got up to 73% at one time. It was $2 in 2022. Now it’s at $34 a share. And, of course, it is an online pharmaceutical with a lot of different offerings. And the weight loss offering is now on there coming from Novo Nordisk. Okay, now the earnings reports. uh are rolling in and you know look there’s a lot of the the vast majority of stocks in the market in my book are soggy They’re stodgy old growth giants of yesteryear. And this week we have 11 of the Dow stocks reporting earnings. So as we go through these earnings from a lot of these Dow stocks, I’m also going to mention the track record of what kind of returns these soggy stocks have produced for investors over the years. And why do so many people own these soggy stocks? We’ll be right back. This is Bill Gunderson. Thank you for tuning in to today’s Best Stocks Now, Best Inverse Funds Now show. I put several hours of research in during the wee hours of the morning each day to bring you the very best cutting-edge stories that I can. To get two free weeks of my newsletter, go to GundersonCapital.com. To talk to us about our fee-based only money management services, call us at 855-611-BEST. Now, back to the second half of the show.
SPEAKER 02 :
And welcome back here to the second half of today’s Best Docs Now show. Well, I have to remind everybody that May 20th and 21st will be in Cleveland in Warrensville, Ohio at the Marriott.
SPEAKER 07 :
and be teaching a workshop Tuesday night at 7 p.m. And then during the day, Tuesday and Wednesday, the whole team will be there, and we’re booking appointments for those two days’ whirlwind trip. The Gundersen tour bus is pointed towards Cleveland. We’re gassing it up, and the battery EV will never get us there. We’d have to make too many stops. But anyways, if you’d like to book an appointment… 855-611-BEST, 855-611-BEST, or go online to GundersenCapital.com. Okay, let’s start with Coca-Cola. KO, the big knockout punch. You know, Coca-Cola does well in a bear market. Coca-Cola does well when the growth stocks are under pressure. This year is a very good example, but you have to look at Coca-Cola over the longer term. Coca-Cola is actually having a very good year so far this year. Why? Because the growth stocks and the tech stocks, you know, that’s been on the receiving end, Coca-Cola, of money. Coca-Cola is considered a consumer product. Almost a staple, I would say, a consumer staple, not discretionary. There’s people that could never live without their Coca-Cola. It’s not discretionary.
SPEAKER 06 :
It’s a staple. They’re selling bottled water and everything.
SPEAKER 07 :
Yeah, okay. So it’s having a good year, all right? If you’re invested in Coca-Cola, congratulations. You’re up 19.7% in 2025 year to date. But as we go back over the last 10 years… Coca-Cola, along with its dividend yield, and I’ve got to imagine that the dividend yield is pretty attractive. Let’s see what the dividend yield is.
SPEAKER 06 :
It’s 2.84, forward dividend, 2.84.
SPEAKER 07 :
Not bad. Okay, so you’re going to get a dividend. But the total return over the last 10 years has been 9.2% per year, which isn’t bad. You say, well, that’s better than a CD. Yeah, there’s a lot more volatility than in a CD, but you have just a flat investment in Coca-Cola and let it sit for 10 years. That’s doubling your money in eight years, okay? Now, the problem is…
SPEAKER 06 :
I mean, you’re looking at the earnings growth for the P.E. It just doesn’t look palatable in my eyes.
SPEAKER 07 :
And the earnings growth continues to decelerate, okay? You just can’t come up with new products. You’ve saturated, I’d like to buy the world of Coke. Everybody already has got one. Now, the S&P has averaged 16.2%. So on this door, number one, an investment in Coca-Cola has returned 9.2% per use. So that looks pretty good. On the other door, just an investment in the S&P 500, which Coca-Cola is just one of those 500 stocks, 16.2%. So it’s sorely underperformed the S&P 500. which doesn’t give me a lot of hope that it’s going to outperform the S&P 500 going forward. Unless we have really ugly times in the market, then it would outperform the S&P 500. Now, over the last three years, Coca-Cola’s averaged just 6% per year. With the dividend. And it would basically be flat, but it’s had a good year here starting with all of the troubles. And I guess they’re not impacted by tariffs because the stock hasn’t been impacted.
SPEAKER 06 :
Still have GLP-1 headwinds, right, in terms of just, you know, potential dietary changes going forward. And, you know, frankly, I mean, their earnings growth of 2.67%, right, and a 24 PE ratio. Yeah. You know, you might as well hold the S&P 500 because the S&P will have a, you know, has a better actually for the earnings growth, has a better earnings growth than about the same PE, right? Yeah.
SPEAKER 07 :
Yeah, I remember we used to have a mutual fund wholesaler. Those guys would call on us all the time. This is when I was at a brokerage firm. The wholesalers, they would travel around visiting and trying to get you. You’d meet in the conference room. They’d buy pizza for you, right? And we’d all have to sit there and listen to their pitch. I rarely went to them, but I sat in on quite a few. And he would bring in this duffel bag or this briefcase, and he would pull out toothpaste. And then he would pull out deodorant. And then he would pull out baby shampoo. And on and on and on. All the things you use. And then he’d sip a Coke, right? Open up a can of Coke. And they had a fund. All the consumer staples. Yeah, so they had a mutual fund on brand names, okay? I don’t remember him lighting up a Marlboro, but… I was about to say, he didn’t light up a can with a cigarette or anything.
SPEAKER 06 :
No, but…
SPEAKER 07 :
So that’s a theory, and that’s pretty much what Wall Street sells. I’m just saying that nothing has changed. This is 25 years ago. Nothing has changed. They’re still buying these things. He didn’t put a diaper on. Nothing has changed over these 25 years. They’re still selling you name brand companies’ stocks, even though, look, Coca-Cola’s quarter. Their sales were down 2% versus the same quarter last year, and their earnings were up 1%. And if it’s true, and I believe it is, that stocks follow earnings growth, there’s no earnings growth. So where are you going to get stock price appreciation from in Coca-Cola?
SPEAKER 06 :
You want to guess what the institutional ownership of Coca-Cola is? Heavy.
SPEAKER 07 :
Heavy.
SPEAKER 06 :
Seventy-two percent. Yeah.
SPEAKER 07 :
I mean, every big institution, if you have an account at Morgan Stanley, Raymond James, I’m not picking on these guys. This is just the way they do things. Merrill Lynch, you’re going to own Coca-Cola. KO, that’s the way they do things. It’s a name brand. Nobody’s ever going to say, this guy put me into Coca-Cola.
SPEAKER 06 :
Or if you own a mutual fund, if you own a large-cap mutual fund, it’s likely in there just because they need places to stash money when the fund gets so big.
SPEAKER 07 :
So, you know, the Best Stocks Now app ranks it, let’s see, it’s a stronghold. It’s number 492 out of 5,091. It’s usually lower than that, but it’s having a good year because of the growth stocks. I mean, the NASDAQ’s still down double digits, I think. Okay, now the next example that we’re going to take a look at, which is a Dow stock, Pfizer. Pfizer, you know, has had some blockbuster drugs over the years. They were in the right place at the right time with their so-called vaccine, but it’s been a terrible time. Just a terrible stock over the years. The CEO is not a popular guy. I remember he said some wacky things over the years. And you’ve had terrible performance, okay? If I’m a shareholder of Pfizer, I’m going to ask Mr. Borla why the stock over the last 10 years is only… Well, it’s delivered 10.2. That’s not bad. Better than Coca-Cola. But recently… It’s been awful. Over the last three years it’s given a 2% return. Over the last 12 months it’s up 2%. Over the last five years it’s done about half of what the S&P 500 has done. And their most recent quarter, their sales were down 8%, 8% loss in sales and drop in sales. And their earnings were up 12%. But, you know, the chart’s just ugly. I mean, this stock is where it was a long time ago. It’s at $23.50 after hitting a high of 61 during the COVID year. It’s lost 67% of its value recently. since the COVID vaccine kind of gave them a little boost for a while. Okay, the next one we’ll look at. I don’t know if it’s a Dow stock or not. BP. BP is actually a United Kingdom company, so I doubt. I think Exxon and Chevron are our two Dow oil stocks. BP has also not been a very good performer over the years. Now, BP sports a big fat dividend yield. Of 6.8%, Barry. Why am I doing all this work trying to find stocks when I can just buy BP and collect my 6.8% a year? That beats the heck out of CDs. Well, here’s the problem, though. You have to add in to that to get total return of the stock. The stock performance and the dividend added together equal the total return. And the total return over 10 years of BP, and talk about headwinds. especially in Europe, right, with the green energy and everything. Ten-year performance of BP, 1.8% per year. You get more than that in a money market. With a lot of risk does BP come with. 1.8% per year, S&P up 16.2%. BP over the last 12 months is down 22%. But you can look it up, Barry, when we come back. Let them know what the institutional ownership is of BP. It is also a widely held stock. We’ll be right back.
SPEAKER 01 :
You gotta go where you wanna go. Do what you wanna do.
SPEAKER 07 :
And welcome back here to the final segment of today’s Best Stocks Now show. And it’s all about earnings, earnings, earnings this week. This is the heart of earnings season. with 120 S&P 500 companies reporting this week, 11 Dow companies, and then next week will be a big week also. Then it starts to really wind down. As I said yesterday, when we started this quarter, the street was looking for 7.2% growth in earnings versus the same quarter last year, which isn’t bad. But now we’re up to 10.2%. As companies have reported and beat their earnings estimates, that number is going up. It will be fun to see where it’s at, interesting to see where it’s at by this weekend. And, of course, that’s in my newsletter in the Macro Outlook section every week, along with my target price for the S&P 500, my 12-month and my 24-month target price. for the S&P 500. That’s based on numbers. It’s mathematics. It’s a multiple times an earnings estimate. That sets the target price. And of course, as companies report, one way or the other, for good, better, or for worse, Those numbers change a little bit. And so far, the trend this earnings season has been very good, which leads me to believe that maybe that the market, the big sell-offs earlier this month, were a little bit overdone. They were anticipating, you know, the end of the world and a huge hit from tariffs. And so far, that’s not really showing up in the earnings reports and the earnings forecast. But there’s still a lot of gray area out there, especially with China trade and companies that do a lot of business with China. Selling into the Chinese markets, you’re in bad shape right now if you depend on sales to China because they’ve got the 100% tariff against us. And buying things that come from China, eventually you’re going to see a big pop because we’re charging them $100. Do you think any of those products are here yet? I don’t really know. If they’re already here, I don’t think the tariff can be charged. I think the tariff is when it hits the country.
SPEAKER 06 :
I don’t know if it’s – my guess is you could have a ship. There’s got to be some kind of – if it left port by this time, there has to be some date there. Otherwise, you’d have a ship in the middle of the ocean that gets diverted like, oh, okay, well, I guess I can’t drop my stuff off here.
SPEAKER 07 :
Yeah, what about all the inventory that’s in the Home Depot right now? I can’t see all of a sudden that stuff having tariffs added to them.
SPEAKER 06 :
Oh, yeah, I think that inventory – fine it’s yeah no exactly so so that’s what that that’s why you’ve seen this inventory build right and in best and actually talked about it today in terms of talking to big companies and what they have in their quote-unquote warehouses right um and which you know gives them an idea of how you know what kind of time length right that they have from a negotiation standpoint so there’s a there’s a lot of moving parts and logistics involved there and uh you know it’s uh It’s something that you can work around, I think, a lot better than obviously COVID, where you had something just completely shut down, right? In this sense, we’ve got more flexibility, at least from a CEO standpoint, right? And we’ve seen CEOs are pretty good at navigating some of this stuff. I mean, they navigated high inflation and still showed us record earnings over time, right? It really highlights, though.
SPEAKER 07 :
How important it is and how they’ve got to really be working in the background to get an agreement. Because if I’m the CEO of Home Depot and Lowe’s and Walmart, I’m chewing my fingernails. If I’m in the shipping and receiving and ordering department, right? What do we call that? The IYM?
SPEAKER 06 :
The logistic folks. Yeah, I mean, just-in-time inventory, right? All that stuff gets thrown out the window if you don’t have, you know, quote-unquote reliability on what the rules are. So I think that’s why, you know, you’re going to need a quick resolution at some point.
SPEAKER 01 :
Absolutely.
SPEAKER 06 :
Because there’s just things that we get, and there’s a reason why we consume five times more stuff than gets bought by China because it’s some of the stuff we need. There’s a lot of junk, too, right?
SPEAKER 07 :
I’ve heard the argument, you know, we’re not going to be going back to manufacturing trinkets again. That’s not the point of the tariffs. I mean, Trump doesn’t want to be making little toys and stuff like this or stuff that fills the hobby stores, the craft stores. We’re not looking to manufacture that in the U.S. We’re looking for them to buy more of our products. Then you have to say, are our products competitive? I mean, in China, I mean, they’re very price conscious themselves. They don’t want to be paying more for a U.S. product when they can get it cheaper from somewhere else. So all of that is coming into play here. And something has to give, because I know this. That’s China’s biggest customer. We are biggest customer to China. They absolutely have to have the U. They are a manufacturing economy. They totally depend on us buying their products, even if it be cheap little trinkets and plastic this and plastic that. They depend on it. Their whole economy runs on it.
SPEAKER 06 :
Yeah, and that’s where the shutdowns were. Besson was talking about, you know, you could have it in a month or so, right? Potentially 5 to 10 million people in China, right? Losing their jobs. Out of work with an idle factory. And that’s a lot of people to go unemployed at one time, right?
SPEAKER 07 :
Well, I mean, there’s a lot of pressure.
SPEAKER 06 :
Think of our unemployment numbers, right? We talked about weekly job losses, right? What, 200K, 212? You really got to be in 300,000 to have a problem? You know, and they’d be in a 5 to 10 million range.
SPEAKER 07 :
Well, there’s a lot of pressure on Trump to get a resolution. Think of the pressure on Xi from all of these companies that make all of these trinkets and whatnot that come to us. Right. So, you know, the pressure on him has got to be enormous. And, you know, look, there’s pride gets involved on both sides. They don’t want to budge. They don’t want to give. They’re going to stand their ground. But something has to give. Okay, we’re out of time for today. We hope we gave you plenty of food for thought there, including go open up a Coca-Cola. Help their sales out. They’ve got 1% growth. That’s it. If you’d like to make a reservation for Cleveland, 855-611-BEST. That’s coming up. We’re just a couple of three weeks out now. And if you’d like to set up an appointment with us, man, I’m putting new money to work on a daily basis that’s coming in from all over America. And you can set up an appointment for planning, review what you’re doing currently, blah, blah, blah. 855-611-BEST or GundersenCapital.com to get a four-week trial to the newsletter and what we’re doing in the market right now. Have a great day, everybody.
SPEAKER 05 :
This show is not a solicitation to buy or sell any securities. Bill Gunderson or clients of Gunderson Capital Management may have long or short positions in stocks mentioned during the show. Past performance is not indicative of future performance. Gunderson Capital Management is a fee-based registered investment advisory firm. All accounts are held at Charles Schwab. Schwab is a member of SIPC and FINRA.
