Tariff Tantrums: How Trade Wars Create Market Mayhem

summary

In this conversation, Jonathan Fodera and Keith Gause discuss the complexities of tariffs and trade wars, emphasizing the impact of U.S. tariffs on foreign economies and the potential benefits for American businesses. They explore long-term solutions for economic growth, investment strategies in volatile markets, and insights into the real estate market. The discussion also touches on global tensions and their implications for the economy, encouraging listeners to identify business needs and opportunities amidst uncertainty.

takeaways

• Tariffs can have a more significant impact on foreign economies than on the U.S.
• Understanding the historical context of tariffs is crucial for informed opinions.
• Long-term solutions are necessary to navigate current economic challenges.
• Investing during market volatility can yield significant returns.
• Identifying business needs is essential for capitalizing on market opportunities.
• Real estate markets are currently experiencing unusual volatility.
• Exit strategies are vital for successful investments.
• Global tensions can affect economic stability and growth.
• Positivity in economic discussions is often overshadowed by negativity.
• Being informed and proactive can lead to better financial outcomes.

🎙️🚨 PODCAST GIVEAWAY 🚨🎙️

Apple Podcast: https://podcasts.apple.com/us/podcast/the-integrated-entrepreneur/id1721945867

Spotify: https://open.spotify.com/show/44djZ5wR9cyqTAKJs8DyEX

Subscribe to the podcast and email poof of subscription to jviccora@integratedbusinessfinancing.com.

🎁🏆  PRIZES  🏆🎁

🥇 Capital Tools Program ($1,999.00).

🥈 Business Strategy Session ($1,000.00).

🥉 Merch (Tees, Hats etc.).

🏅 Join us on the show.

Podcast Info: https://feeds.buzzsprout.com/2285267.rss

Apple Podcast: https://podcasts.apple.com/us/podcast/the-integrated-entrepreneur/id1721945867

Spotify: https://open.spotify.com/show/44djZ5wR9cyqTAKJs8DyEX

Also Check out:

Built 2 Exit Assessment: https://jonathanfodera.builttoexit.biz/.

Join Jonathan in the Capital Tools Program: https://www.thecapitaltoolsprogram.com/home

Jonathan's Facebook: https://www.facebook.com/John.fodera.3

Jonathan's LinkedIn: https://www.linkedin.com/in/jonathan-fodera-391a98a1/

Jonathan’s Instagram: https://www.instagram.com/jonathan.fodera

Integrated Business Financing Website: https://www.integratedbusinessfinancing.com

Transcript

Jonathan Fodera (00:02)
Hey, what's going on everybody? Welcome to the Integrated Entrepreneur Keith and I are gonna talk about how to navigate all this volatility You have to expect it, you have to account for it because we have a tariff war going on right now. so as

Trump and these other world leaders are having these pissing matches. We're seeing massive swings. I mean, I'm getting alerts. Bitcoin is up 5%. It's down 11%. what was the text message you sent me this weekend? Talk about that. Yeah.

Keith Gause (00:27)
I said, I said it's ripping. And then

11 seconds later, it was ripping in the wrong direction. And then 24 minutes later, it was ripping back over. It's been crazy.

Jonathan Fodera (00:39)
here's the cool thing, I'm gonna give you guys my thesis. I want Keith to pull it apart, I actually think some of this is by design, A lot of people don't understand how much buying power the US has, by us putting tariffs on these other countries, it is way more meaningful than them putting tariffs on us,

And by the way, most of these countries have obscene tariffs on us to begin with. This is not us just going out and doing this and trying to bully them, even though that is what the media is making it seem. If you actually look up what tariffs that Canada has in place on the United States prior to Trump taking office, you will be shocked,

Keith Gause (01:21)
But they won't look it up because that no one wants to go look up the truth. Everyone just wants to hang on the bullshit

Jonathan Fodera (01:28)
Exactly on what the media is saying. So Keith, what's your take on this before we get into?

Keith Gause (01:32)
I think people are uneducated think, by design now, no one trusts anything anyone says, with the inclusion of AI. aside from the current political environment. AI is now creating mass chaos and whether people want to believe photos or videos or voices cause it's all AI generated.

Jonathan Fodera (01:40)
Yep.

Keith Gause (01:53)
I think with the relationship to all of that rolling into this bullshit presidential, everyone hates Trump now and Elon and selling their Teslas and all the shit. think that if people really took a second to go research what tariffs were back in the day and the role that they played and the ability for that to reduce tax liability on us individuals to live here and all of the positive things that come from it.

think people would look at a tariff differently. Unfortunately, we'll never get there. So, you know, I think regardless of any of that shit, we're going to have to deal with it and we're going to deal with it in a negative impact because that's what sells. Positivity doesn't sell anymore. think when it's passed, people will fucking look back and say, oh, they were right.

Jonathan Fodera (02:30)
Yeah.

Keith Gause (02:37)
This does make sense.

Jonathan Fodera (02:39)
these countries, especially some of our neighbors, have always had tariffs on us. For whatever reason, it hasn't really... No one talks about it. So the only thing that you're hearing is now when we're putting tariffs on them, because that is a much bigger deal. We buy way more. that really does hurt their economies more than it hurts ours.

So let's talk about this, because this is not going to go away until there's long-term solutions. And there's nothing wrong with that,

Keith Gause (03:06)
There's long-term solutions already in play, but no one picked up on what Trump said in his press release He said if they want to avoid the tariffs they bring their business to the United States And what does that do? Creates hundreds of thousands of jobs in the US it builds the US economy. They can avoid it What do we do to avoid tariffs?

We build plants outside of the United States and take business elsewhere. That's what's supposed to happen. We're trying to get it back to what the original arrangements were. If I want to do business in California from Florida, is it going to be more expensive for me to operate a business? Absolutely. Would it be in my best interest to move my business? Maybe not California, was wrong fucking statement.

Jonathan Fodera (03:50)
Bad

example.

Keith Gause (03:51)
But let's go somewhere different. Okay. Anywhere but California. But the reality is if I want to do business six states away, it's going to benefit me to move my shit there or have a location there. It's going to decrease my cost of doing business. It's going to increase my ability to get more business because I'm locally established. It's the same fucking concept on a much bigger scale. Simpletons just can't understand.

the numbers behind these conversations, And when I say simpletons, mean, all of us, mean, we're, none of us are wildly educated to the political environment anymore. Right. Unless you've been in politics, I don't know, Joe Biden, 174 fucking years. Right. And he still can't get it right. So that that's the problem is I just think that no one will go look at to understand the true footprint of what a tariff was supposed to do.

Jonathan Fodera (04:36)
I want

to talk about how to play it. So I love what's going on, we keep seeing all these companies that are now moving production into the United States, creating jobs. I think Apple did a data center and it's like 20,000 jobs are being created, That's incredible.

that obviously helps us tremendously. It's going to reduce our tax burden. we should never fucking pay tax again. Property tax should be abolished. Fuck these people. because they have already absolutely shown and demonstrated that all they do is steal our money. that's an aside. That's a whole nother show. you could rant on that for fucking hours. I want to fill out my tax return. Fuck you.

they can keep the $5,000 bullshit Dodge rebate. I don't give a fuck. That's not going to do one bit of good. How about no more fucking taxes? How about no more property tax? You know how much I would save a year?

Keith Gause (05:26)
I would

say 19 grand a year, I just looked it up. 19 fucking thousand dollars.

Jonathan Fodera (05:32)
I would save that in Florida

since we're talking about property taxes and we got on this tangent,

Do you know that in other countries you pay like a stamp tax? So I told you about Belize, right? I'm in the process of seriously investigating, looking into getting a property in Belize for a second home and

Keith Gause (05:38)
People need to go to spiritual.

Yep.

Jonathan Fodera (05:56)
an investment. I pay, I believe it's seven and a half percent of the purchase price once. And then I think the taxes or whatever the maintenance is, super low. So you really only pay tax once and then you own it for life. And you take that deed, And you pass that down to your kids, there's no issue. you actually own the property.

Now imagine if I try to pass on one of my properties here and for whatever reason my kid forgets to pay the property tax. It's a state's property. It's crazy. guys. I'm sorry we went on that tangent. That will be a whole nother show.

So the thing I wanna talk about is now we have all this volatility, So what do we do? because that's why you guys are listening. You wanna know how to play this. think about what is gonna be volatile, that it doesn't make a difference if it's priced low.

or price high in the short and medium term because you believe in it over the course of years. Give you a great example, Bitcoin. Okay? I believe in it and I believe it's great. So every time you see an 11 % drop, okay, it's not going to zero. I would be shocked if it went to zero. So when you see an 11 % drop, that's like a flash sale you should buy when you have extra cash.

because it's only going to go up.

So I'm getting out of the ring because I'm coaching my son's practice and I see Keith's text I'm like, oh shit So I just bought some more XRP and some Bitcoin when when it was diving in the dumpster, right? And then it went right back up to like 93 or 94 now if I was a trader, right? I could sell it I could have made you know 15 20 percent, but that's not my MO. That's not what I do

Keith Gause (07:24)
Yes,

Jonathan Fodera (07:36)
So you have a great asset class that you believe in, you know is going to be around long term. And because of all this volatility, it's a great time to buy. Well, what else works like that, guys? If you're in manufacturing or if you are in retail and some of the materials that you need to produce whatever you produce is fluctuating like this, why wouldn't you do the same with steel? Why wouldn't you get those goods and lock them in at a much

cheaper price point, Because what is that going to do? That's going to help you lock in your profits down the road. A good friend of mine who is in manufacturing, I don't want to say his name, right? When COVID started and you saw this type of volatility, some people were investing in assets, some people were, he was buying steel. That's all he was doing is buying steel. And guess what happened? Because there were shortages,

throughout COVID shipping was almost impossible. They were closing down the ports. Everything that he bought skyrocketed, And it's not even like he could unload it. He actually needed it himself. He was one of the few people that could still produce goods while all his competitors weren't able to. So why am I telling you guys this? Because every single one of you has an opportunity

if you really look into this. Every single one of you can figure out, what do I need for the business or where can I invest some of my money personally that is really going to produce this type of return? Keith, what are your thoughts on this?

Keith Gause (08:55)
First, you got to identify what your goal is. Because if you don't understand your exit strategy before you put money anywhere, you're going to not make the right decisions. start with the end in mind, is this a short term play as a medium long term, then you can make your decision on asset class or likable investment, whatever you want to do.

because I've established a long-term play psychology, I've now allowed myself a slice of the pie for short-term deployments.

and also be able to take advantage of the quick 10 to 15 % swings. So much smaller piece of the pie, obviously, because we've got a bigger mission that we're after. But the reality is, if you're disciplined and you can budget, you can do both. You can take advantage of the short-term wins or losses because you're going to hit some of those too. But you also need to have that 80 % or whatever that number is in the long-term deployment strategy.

With that, let's use real estate as an example, because not everyone is crypto savvy, right?

Same thing in real estate. Everyone says real estate over the course of, five to 10 years doubles in value, but we've also seen and we're experiencing the high volatility in retail prices and sales and people, my house is now worth triple what it was seven months ago. They sell now. They can't go buy anything. We're two shits even close to what they were sold. And now we have a lot of people dealing. They're going into a small three, two fucking.

Jonathan Fodera (10:13)
So glad you said that.

Keith Gause (10:18)
and know, D.R. Horton cookie cutter box house and they were living on the creek or on the river somewhere before. So it's the same concept. If you sell in the wrong period of time because you get greedy, you have to understand the repercussion of that on the flip side. So just do your research, understand the end in mind first and then you can make those decisions on what you could do. Typically you do all right. Let's look at you guys.

Jonathan Fodera (10:23)
Mm-hmm.

I agree. Real estate is weird though. I've never,

there's so many investors sitting on the sidelines right now because of where the rates are. People don't realize that. So I have been looking at that. I wish the volatility would really hit that. It hasn't. Okay. I have not seen a lot of great deals, but I am not a professional hunter. I have my list that's sent to me and then if something's interesting, they let me know.

but there has not been something where I said, all right, let me pull the trigger and allocate money there over this thing.

Keith Gause (11:09)
the only thing lately that I've really come across in a deal format is buying in these brand new developments with builders. We have some down here that are giving like a four and a half percent fixed 30 year, As a kind of incentive to buy and block that in. Now you can negotiate prices, So.

I've been looking at that actually, because it's 2 % cheaper than even I find it on the open market.

it's a brand new home, so you get locked in at a decent rate with warranties and all that bullshit.

Jonathan Fodera (11:40)
All right, guys. Well, listen, we are going to talk about the taxes and everything else. But what I what I think is a great takeaway for you, understand what your business needs. Look at what's acting very volatile right now, because there's a lot every single market is doing it. Crypto is probably having some of the wildest swings I have seen in years. I don't want to say ever because this is kind of normal. But you're seeing it in S &P. You're seeing it in

precious metals, oil's getting its ass kicked, So I do think that everything that is going on is a net positive. My concerns are more of a geopolitical variety. And what I mean by that is we don't want World War III to break out. World War III doesn't help anybody.

There's a lot of different things I can start it off. Like right now, as of recording this, looks like Ukraine's going to sign the mineral deal, but I don't trust anything that's going on over there because it seems like you have a lot of the minor players pushing for World War III and a of the major players like, hey, why don't you just sit down and shut the fuck up? Because we don't want this and we're the ones that are going to actually decide this. All right.

But you could also see Israel doing something really, really, really stupid and having something start in the Middle East too. And none of that is good for business, our country, or the world. And I just wish that we went back to simpler times where all we worried about was our country and ourselves.

Because if we could do that, we would rise up the ranks again.

Keith Gause (13:11)
That's the problem. It's an easy concept.

Jonathan Fodera (13:13)
I'm with you. You know what's kind of crazy? The older I've gotten, and I'm not old, but the older I've gotten, the more I realize I don't know shit.

Keith Gause (13:21)
Yeah, half the time it's on purpose, the other half of the time I'm really stupid and I'm like, wow. It's amazing. It brings something up to me. I'm like, I don't know what that is. And they're like, huh? Idiot.

Jonathan Fodera (13:26)
Yeah. Great.

Yeah. Love it. Well, guys, listen. Even though Keith and I had a severe bout of ADD, and I will take the credit for this one because this is all me, share this with someone who needs to hear it because I guarantee if you guys listen to us and navigate the volatility by picking out what you need in advance and then seeing when it dips and buying it, you're going to be much better off for doing it. All right. So we appreciate you.

Keith Gause (13:31)
Sorry.

Jonathan Fodera (13:52)
I love that you guys listen every week. Just please share this so other people can hear it as well. Take care, guys.

Keith Gause (13:58)
Thank