Worldwide Exchange Record at Risk, Political Party Problems, Big Beautiful Winners & Losers 7/7/25
Jul 7, 2025
Political tensions are heating up as President Trump refocuses on tariffs, impacting stock futures and Tesla's share price. Elon Musk may be eyeing a third political party, further complicating his relationship with Trump and affecting markets. The recent BRICS meeting poses a challenge to the U.S. dollar, potentially stirring up volatility. Local disasters like flooding in Texas and legislative changes from Trump's tax bill have mixed implications, with notable winners and losers emerging in various sectors.
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Tesla's Political Shift Hits Stocks
- Tesla shares fell nearly 7% as Elon Musk redirected his attention to politics by proposing a new America Party.
- This move revived tensions with President Trump and caused investor uncertainty about Musk's role.
Brace for Tariff-Driven Volatility
- Investors should prepare for volatility due to tariff uncertainties and potentially higher tariff rates for multiple countries.
- Monitor earnings reports closely, as earnings are cooling and valuations remain high at 22.5 times forward earnings.
Invest in Tech, Avoid Energy
- Favor technology sectors focusing on long-term trends like AI, quantum computing, and cybersecurity for resilience.
- Avoid energy stocks due to OPEC's supply hike and associated pressures on prices and profits.