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Magnetic North Financial Market Forecast April 2025

  • Writer: Christopher Lakian
    Christopher Lakian
  • Apr 23
  • 2 min read

Over Christmas, my wife, Rachel, took a new Job at Marcus and Millichap, a global Commercial real estate firm in downtown Charleston.

 

She is in sales, mainly focusing on large Industrial office spaces around the country with her team. I put her link below for those interested in her work.

 

Back to the story:

 

We bought a new car since the VW SUV was leased, and Rachel's job requires a lot of driving. (7200 miles in just 4 months)

 

Last week she got a nail in her tire, being the thrifty mechanic, I was compelled to go to AutoZone to buy a low-profile car jack to lift the WV Gulf-R to take the tire off. The lift was $104.00 retail, made in China.

 

It hit me!

 

If the lift was not on the shelf at AutoZone Mount Pleasant, meaning on a boat bound to the USA, it would have cost $245.00 (the 145% tariff in full effect). There is no way I would purchase a lift for that price; I am too frugal.

 

In this scenario,  would you buy the lift for $245.00 or find another way to get the tire off?

 

The Wall Street Journal has been highlighting daily stories of small businesses across the United States that are in jeopardy of the China Tariffs. Bottom line, it is not good. Most are small, with 1-100 employees on the verge of bankruptcy if global trade tariff policy is not resolved.

 

I hope the White House is listening to Scott Bessent and other industry leaders about a way forward. Most companies that import goods have 1-3 months of working material in the United States. We won't see the full damage until June or July of this year to truly understand the damage caused by tariff insanity.

 

Government policy will change at some point; either the economic damage becomes too great, Congress removes Trump's tariff authority, or the White House caves and walks back the reciprocal tariffs.

 

We could also get lucky, and trade deals will start to be signed. (with any resolve markets will recover 90% in very short period)

 

Until we get a policy change/ progress, I still recommend Banks, Insurance companies, Software, International strategies, and any company that can pass through cost increases onto the end buyer.

 

Also, low-volatility funds, high dividend-paying ideas that exclude companies, and strategies that can be overwhelmed by a trade war.

 

For people who retired and want nothing to do with anything at all, please see my second email titled: Information for retirees. It contains ideas and current strategies in accounts as we speak.

 

All my best

 

Chris

 

 

 

 

Christopher R Lakian

Owner, Portfolio Manager, AIF

 

Magnetic North Financial LLC

3003 Dunes West Blvd Suite 29

Mt Pleasant SC 29466

Main Number: 843-353-0313

Cell: 843-737-6060

Global Relay Secure Text: 843-428-7827

 

 

OneSeven ("OneSeven") is a registered investment adviser with the U.S. Securities and Exchange Commission (SEC). Registration with the SEC does not imply a certain level of skill or training. All titles listed for individuals associated with Magnetic North Financial represent the individual's role with Magnetic North Financial, and not their role with OneSeven. Services are provided under the name Magnetic North Financial, a DBA of OneSeven.

 

 
 
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OneSeven ("OneSeven") is a registered investment adviser with the U.S. Securities and Exchange Commission (SEC). Registration with the SEC does not imply a certain level of skill or training. All titles listed for individuals associated with Magnetic North Financial represent the individual's role with Magnetic North Financial, and not their role with OneSeven. Services are provided under the name Magnetic North Financial, a DBA of OneSeven.

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