Raymond Chandler, my favorite writer, in Farewell, My Lovely describes something that really stood out as being "as inconspicuous as a tarantula on a slice of angel food." Chandler had a way with unforgettable imagery. President Trump may be a lot of things, but one thing he is not is subtle. But do you know who else is bereft of subtlety? That would be Trump's most vociferous detractors, people so vocal with their hatred of the man that they seem blind to anything else. There is now a name for this: TDS, or Trump Derangement Syndrome. I am convinced that if Trump found the cure for cancer, these folks would accuse him of engineering some sort of biohazard for his own personal profit.
I wish the Haters would focus more on critiquing Trump's policies and less on the emotion-fueled ad hominem attacks that seem to be the only arrows in their quivers. Let's take a look at Trump's trade policies. He has this idea that revenue from tariffs could replace the income tax system. That seems like a fever dream to me. I have never favored tariffs as economic policy (I am very much a free market guy). But here Trump seems to be pursuing conflicting goals. He wants to address the affordability issue, but tariffs are likely to raise prices. The company that is importing the goods has to pay the tariff. That company, depending on the competitive landscape, can pass the cost onto consumers by raising prices. Or the company can absorb the cost, resulting in lower profit margins. No free lunch here.
Trump declared April 2nd, 2025, as "Liberatrion Day" in a speech where he announced sweeping new tariffs. The stock market sank faster than our fat Basset Hound going off the pool diving board. Why such a violent reaction? For one, concern over how various companies would be affected. Even though the Supreme Court has struck down many of the Trump tariffs, I imagine that Trump will continue to seek other ways to get what he wants. So, here it would be helpful to consider some stocks and sectors that could be somewhat "tariff-proof." That would lead us to areas where there are no physical imports, but where we could find high margins, recurring revenue, and pricing power. Examples in the software sector include Microsoft (MSFT, $400), Adobe (ADBE, $258), and Salesforce (CRM, $198). That brings us to another problem, because software companies are being hit by AI concerns--namely that AI could replace some of what is done by software. Everywhere where you go, you risk stepping in something else (like in our backyard, the gifts left by that fat Basset).
Another portfolio option here would be in asset-light financials: Visa (V, $316), where revenue is from transaction flow and not physical inventory. Keep in mind, though, that a slowdown in GDP would reduce transaction volume. Healthcare services (not medical devices) is an area of domestic and inelastic demand; UnitedHealth (UNH, $286) would be a fit here. In utilities, I favor NextEra Energy (NEE, $93), but there is interest rate sensitivity. Defense contractors like Lockheed Martin (LMT, $643) and RTX (RTX, $197) offer a haven from tariffs, as defense spending tends to be geopolitically driven and often rises during trade tensions. Finally, consumer staples companies like Procter and Gamble (PG, $164) and Costco (COST, $987), althought they do have some global supply chain exposure--but they also have strong pricing leverage. Now just be careful not to step in anything.
Don't hold your breath waiting for the Haters to offer up any thoughtful, reasoned arguments about why they disagee with Trump on anything. They'll instead just keep calling him a Nazi--and I personally find that offensive because my father fought the real Nazis in World War II. That's not a term that should be thrown at someone with such casual abandon.
But, the Haters are just going to keep on hating.
Life is short. Get Busy!
Jim
Disclosure/Disclaimer: My family members and/or I own shares of V, NEE, PG, and COST. Individual stocks are mentioned here for the sole purpose of illustrating investment concepts, and nothing stated here should be construed as the advice to buy or sell any security. ChatGPT was a source for some of the "tariff-proof" stock names.
Copyright 2026 James Brinkley Taylor, Jr.
Email me with any questions, comments, or feedback:
jbrinkleytaylor@gmail.com
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