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Tariffs Rattle Markets - GM higher, Deutsche Bank lower
On Thursday The Trump Administration announced that (previously delayed) tariffs on trading partners, including Canada, Mexico and The European Union would take effect. The tariffs are: 25% on steel and 10% on aluminum. (Nice round numbers) At 11:00 AM the Dow was off about 1% and the S&P about half as much.
On the same day GM stock soared on news that Softbank Vision Fund would make a 2.25 Billion investment in GM Cruise Holdings, LLC. In late morning GM up over 10% for the day, bucking the broader market sell off.
In contrast Deutsche Bank was off nearly 8% after a Fed report called its operations “troubled.”
Re GM - It’s about time the stock does something. OAKBX went into it big 3 or 4 years ago, thinking it a good value play. Last time I looked it was the fund’s second largest holding. So, for a patient long term investor, it might have been a good call. But sitting on a stock for more than 3 years without being rewarded is hard for most to do in an age of computer griven portfolios.
