"After yesterday's ridiculous pullback, the major indices are gearing up for another down day. All thanks to potential tariffs on European countries that are opposed to the U.S. takeover of Greenland. At the moment, the S&P 500 is down about 0.11%. The SPDR S&P 500 ETF ( SPY) is down about 0.18%. The Dow is down another 0.28%, as the Nasdaq dips about 0.2%."
"Crisis will create opportunity However, as bad as things may appear, the crisis may soon give way to opportunity. "If you're a medium to longer term investor, probably this is a pretty healthy buying opportunity, because the tailwinds of this economy are completely unaffected by the goings on of the past weekend," said Scott Ladner, investment chief at Horizon, as quoted by CNBC."
"Unsurprisingly, shares of luxury and beverage companies tied closely to European exports pulled back. LVMH, which owns iconic brands such as Moët & Chandon, Dom Pérignon, and Veuve Clicquot, dropped roughly $7.50 on the news. However, such pullbacks are temporary. Global demand for spirits, luxury goods, and European brands is still strong."
Potential tariffs on imports from eight NATO members, starting at 10% next month and rising to 25% in June, sparked another market decline with the S&P 500 down about 0.11%, SPY down about 0.18%, the Dow down about 0.28%, and the Nasdaq down roughly 0.2%. Luxury and beverage stocks tied to European exports, including LVMH, fell on the news, while European ETFs such as Vanguard FTSE Europe ETF (VGK) also weakened. Global demand for spirits, luxury goods, and European brands remains strong, and medium- to longer-term investors may view current weakness as a potential buy-the-dip opportunity.
Read at 24/7 Wall St.
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