Are Energy stocks immune to Trump tariffs and the ultimate safe haven?
This will be a quick one and yes, I'm actually writing about the stock markets now, thanks so much President Trump.
But seriously though, I never thought I'd ever have to look at stocks but my curiosity grew as crypto and stock crashes kept making numerous headlines and commentaries on social spaces.
One thing I've come to observe flooding the socials specifically is a bunch of posts trying to rationalize the tariff wars by insinuating that Trump is essentially doing this to bring down the United States $36T debt and associated interest costs through this game of tariffs.
To clarify, I have no idea what game Trump is playing and I'm not going to pretend I do. That said, if I'm to offer an opinion, I'd say that the cost far exceeds the benefits even if debt costs were to fall to zero.
The truth is, yes, bond yields are falling, a couple of people are beginning to talk about this, essentially signaling a quantitative easing in action but one thing is also true and that is that the benefits of Trump tariffs are not nearly enough to compensate for the crash of the stock markets.
Surely, we can say things like “you don't lose unless you sell” but that would totally ignore that there are investments that aren't based on actual stock in balance, so there lies a huge financial risk when market crashes like this are purposely triggered by the government.
In addition to this, the crash of the stock markets doesn't hurt billionaires in the way that most people make it out to seem. When I read things that suggest that President Trump is Robinhood by crashing the stock markets, I can't help but laugh because it's not deep pockets that fret most when markets crash.
It's always retail, so how could Trump be robbing the rich to feed the poor if the poor are the ones forced to take losses and run around looking for safe havens, not for capital gains but just for stability?
It's pathetic to think the crash of the stock markets doesn't hurt small pockets far more than it hurts billionaires.
But enough on the speculations and Trump praising opinions, what's up with energy stocks?
Are Energy stocks a safe haven?
Utilities, for which energy falls under are often slow growing but usually offer stability. I discovered this about 2 weeks ago when I did some research on the energy sector, specifically electricity and found the numbers of some companies to be pretty impressive.
For example, Duke Energy, which was the first stock I looked at today, had impressive performance overtime and in the last three months, where the rest of the market crashed, DUK has remained a steadily growing stock.
I jumped on companiesmarketcap.com to look at the energy(electricity) stocks list and found that most others were also performing quite well, especially the US-based energy companies.
It is truly impressive how these often overlooked markets grow quite steadily and remain most resilient in times of broader market turmoil.
While I generally don't trade or invest in stocks, the idea that energy will be a heavily patronized market segment in coming years due to artificial intelligence and growing technology advancements certainly makes it tempting to bite.
When the rest of the markets crashed by -10 — 20% and even worse for crypto, DUK appreciated by 14.79%.
Maybe, just maybe, the energy sector is the safe haven nobody really talks about.
Posted Using INLEO