Portfolio watch
• Capital Group is looking at multinational companies as potential winners from the tariff turmoil. “Very agile and decisive multinationals are better equipped to adapt their resources and respond to constantly changing policy directions,” said Higashi, who added that Northrop Grumman is a company that could meet the moment. Sigashihe explains, citing their familiarity with cross-border regulations. Among non-U.S. companies, Dutch semiconductor equipment maker ASML is another competitive global company, according to portfolio manager Chris Thomsen. Higashi also likes Japanese conglomerate Hitachi.
• When it comes to reading the direction of interest rates, Andrew Graham at Jackson Square Capital is adding a “hawkish” or “dovish” tilt to Federal Reserve Open Market Committee deliberations. A “hawkish” tone to the October 29 rate cut triggered a “nontrivial pullback” in equities in November, he writes, adding that there’s little expectation for a January cut, so this time the effect might be more muted. Still, there’s a chance of a January cut coming back on the table, especially if labor market indicators remain weak, he writes.
• When it comes to the holidays, wealthy patrons are propping up the tips-based economy, says Bankrate Senior Industry Analyst Ted Rossman. “Fewer people are tipping, but the amounts are holding steady and even increasing in some instances,” he added. Tipping amounts also tend to increase with age, with 62% of baby boomers saying they give bigger tips if the service is superior. Black Friday retail data supported the idea that wealthy shoppers are propping things up for goods as well as restaurants and other services.
