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Research Vlog: China Tariffs

05.03.2018 | Ben Phillips, CFA
Congress Returns & China Dominates News



This Week's Highlights

  • Congress returns to Washington DC today after watching China tariffs dominate the headlines last week.


  • With trade rhetoric heating up, shipping companies are exposed to increased volatility. Below are three shipping companies we’re watching: 
    • Expeditors (EXPD): A logistics company that buys cargo space from ocean shipping and airline companies for resale to customers. ~27% of its 2017 revenue came from China. 
    • Atlas Air Worldwide (AAWW): A New York cargo airline that provides outsourced aircraft and aviation operating services. ~15% of its 2017 revenue came from China.
    • Matson (MATX): A company that provides shipping services throughout the Pacific Ocean, primarily to and from the Hawaiian Islands. ~23% of its 2017 revenue came from China.




  • Congress is currently drafting the 2018 farm bill, a re-authorization of the 2014 farm bill. Tthe Trump administration is pushing to rein in food stamp spending by nearly $130 billion over the next decade. Food retailers, such as Walmart (WMT), Target (T), Dollar Tree (DLTR), and Kroger (KR), could lose billions of dollars in sales.


  • The nation’s opioid crisis continues to grab headlines and Congress’s attention. In our view, pharmaceutical distributors not only face judicial headline risk, but also legislative risk as lawmakers consider increased regulation.



Read More from this week's Policy Insights: Congress Returns.





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Active Weighting Advisors LLC ("AWA") is an SEC-registered investment adviser that manages ETFs under the brand name EventShares Funds. Mr. Phillips is the Chief Investment Officer of AWA. The views expressed are subject to change, and no forecasts can be guaranteed. The comments may not be relied upon as recommendations, investment advice or an indication of trading intent. AWA is not soliciting any action based on this document. In preparing this document, the author has relied upon and assumed, without independent verification, the accuracy and completeness of all information available from public sources. Investing involves risk, including the possible loss of principal and fluctuation of value. Mr. Phillips and AWA disclaim responsibility for updating information. In addition, Mr. Phillips and AWA disclaim responsibility for third-party content, including information accessed through hyperlinks. For more information about EventShares, contact us by calling 877.539.1510 or visit our website at www.EventShares.com.


Policy Investing

Policy investing focuses on understanding the laws and regulations that impact companies. It attempts to find mispriced assets and invest in those companies before the market understands the implications to a company’s profitability and operations.