Wall Street appears headed for a second major loss to end the week as investors try to assess the economic impact of President Trump’s tariffs. At mid-day Fiday, the Dow Jones Industrial Average was down more than 2.5%.
Many investors are seeking stocks that are largely unaffected by tariffs. For example, Goodyear Tire has experienced a stock surge due to its predominantly U.S.-based manufacturing operations.
The company may benefit in two ways. It won’t face tariffs and its competitors that offshore production will likely have to raise prices, so Goodyear sales could increase.
Kevin Rusher, founder of lending and borrowing platform RAAC, sees more money flowing into gold, which he notes rose 10% before the tariffs were announced.
“The price of gold continues to reach all-time highs as economic uncertainty reaches levels we have not seen in some time,” Rusher said in an email to ConsumerAffairs. “We now see gold well over $3,000, with the yellow metal touching $3,160 on April 2, when the U.S. implemented sweeping global trade tariffs.”
In fact, over the last two months, the price of gold has risen by over 5% per month, a performance that hasn’t been matched since the 2008 financial crisis.
“In times like these, risk-off investors typically have three choices: cash, gold, or treasuries, and if your choices are limited to the U.S. dollar, U.S. Treasuries, or gold right now, gold is probably your best bet.”
That said, the price of gold was down more than 2% at mid-day on Friday.
When it comes to investing in this kind of environment, caution is advised. It’s always a good idea to consult a trusted and objective financial advisor before changing investment strategies.