Hello, Reader.
April 9. July 9. August 1.
These are the deadlines – or in the case of the first two, “would be” deadlines – for President Donald Trump’s reciprocal tariffs against a myriad of countries, including Canada, Mexico, and Brazil.
This has been a sweeping saga.
The president first announced his “Liberation Day” tariffs on April 2. All three major indices plummeted in response, and the month saw historic losses.
Then, just a week later, Trump declared a 90-day pause. The pause had a July 9 expiration date… but was then extended to August 1 just a day before that deadline.
Chaos is a word that comes to mind.
And this leads me to today, only two days away from that extended deadline.
What happens between now and then is anybody’s guess. The headlines have changed before, and they could very well change again come Friday, tomorrow, or even tonight.
But what is certain is that trade relationships and peace deals that have held our global economy together for decades are hanging by a thread. If that thread breaks, we’re looking at an era of chaos that will make 2008 look like a minor correction.
Indeed, we are living in The Age of Chaos.
This isn’t just another market cycle where you will eventually see the light at the end of the tunnel. It is a fundamental reshaping of the economic order.
And when the dust settles, we’ll be managing our money in a completely different investment landscape.
So, in today’s Smart Money, let’s go over what you can do today to prepare for what lies ahead…. both on August 1 and after.
Let’s dive in…
The World Is Your… Investment Opportunity
First, you will want to unload any stocks in your portfolio that are set to be victims of the current administration’s trade war.
This list includes even flashy names like Amazon.com Inc. (AMZN). Up to 70% of what you see on Amazon comes from China. Due to higher tariffs on those goods, Amazon could lose its competitive edge entirely.
Nike Inc. (NKE) is expected to take a $1 billion hit in fiscal year 2026, as 16% of its footwear imports come from China and 50% from Vietnam, both facing tariffs up to 46%.
If these household names are in your portfolio, I strongly suggest selling them.
Instead, I recommend looking beyond household names… and even American ones.
I’ve been making the case for foreign stocks since the Trump administration announced its new tariff regime in early April.
Now, I know that foreign stocks can sound scary if you are unfamiliar with them. For many American investors, a foreign name is a deal-breaker. It adds complexity to an investment process that is complex enough in English.
Because U.S. stocks are more familiar than foreign stocks, they feel safer.
But you should never be afraid of foreign stocks. In fact, I’ve been making these calls for 30 years now. And I’ve seen some incredible success.
In 1996, I made a series of what I called “Franco-American” trades.
Basically, “Sell America… Buy France.”
I recommended selling the iconically American Coca-Cola Co. (KO) and recommended buying Danone Group (BN.PA), a French global food and beverage company.
Over 10 years. Coca-Cola fell 5%, while Danone jumped 322%.
I also recommended selling Hilton Worldwide Holdings Inc. (HLT) and recommended buying Bains de Mer Monaco (BMRMF), a French resort company.
After nine years, Hilton was up just 26%, while Bains de Mer soared 866%.
In a third example, I recommended selling Citigroup Inc. (C), the United States’ third-largest bank, and recommended buying Banque Nationale de Paris, a major French bank that, after a series of mergers, is now known as BNP Paribas SA (BNP.PA).
Although it may sound unbelievable, investors who bought Citigroup in 1996 and held have not made a single dime on their money in three decades. On the other hand, BNP has delivered a whopping 1,355% gain.
In these three Francophile recommendations, $10,000 into my three sell recommendations would have landed you a disappointing $32,300.
While that same amount of capital in the three buy recommendations would have had you sitting on a six-figure sum of $229,600.
That is the potential power of the foreign stock market.
There are, of course, great opportunities beyond the French market.
In fact, I’ve got my eye on a South Korean company that the smart money is already moving into…
Invest Abroad
This e-commerce retailer has been growing rapidly over the last several years, as it has expanded its dominance and improved its profitability. It already generates over $30 billion in annual revenue.
One aspect I like about this company is that it uses acquisitions and targeted investments in foreign markets to increase its market share.
For example, last year it acquired a London-based seller of luxury clothing and beauty products that sells primarily to customers in the U.S. and Europe. And it is making a big push into the Taiwan e-commerce market and has plans to expand into other East Asian markets.
As this South Korea-based company expands its empire and its earnings continue ramping higher, I expect its share price to post solid market-beating gains for many years. Projections are showing that it could become 700% more profitable by 2027.
I give away all of the details on this foreign play – for free – in my brand-new special broadcast.
I also share six more free trade ideas, both for current buys and sells.
My “buy now” list contains under-the-radar, early opportunities that could multiply your money in the coming months thanks to their ability to adapt to the Age of Chaos.
On the other hand, my “drop immediately” list is full of companies with significant headwinds that could drag down your portfolio.
Regards,
Eric Fry
