logo
Here's How Kevin O'Leary Is Investing During Tariff Turbulence: Should You Do the Same?

Here's How Kevin O'Leary Is Investing During Tariff Turbulence: Should You Do the Same?

Yahoo22-05-2025
Keeping up with tariffs has been a little bit like watching a tennis match — they go from one side to another almost daily. It can be challenging for an investor to keep up. At times like this, it can pay to listen to an experienced investor, like 'Shark Tank's' Kevin O'Leary, and follow their lead.
Be Aware:
Find Out:
Here's how O'Leary in investing during the tariff turbulence and whether you should do the same.
One of the biggest risks of the tariffs the Trump administration has proposed is that they will raise prices, which could lead to a recession. Federal Reserve Board of Governors Chairman Jerome Powell recently said while the Fed does not predict recessions, there is typically a one in four chance of recessions within 12 months at any given time.
O'Leary gave his insight on the likelihood of a recession in a recent interview with CNN's John Berman. 'Let me just say that we've been talking about recession now for four years in a row, you may recall. Forecasters of recessions have been wrong for four years straight. … We're not in a recession right now.'
O'Leary added that he is not currently investing as he would in a recession, since there is no recession at the moment.
Read Next:
O'Leary explained that, while tariffs make for 'a difficult, tricky situation,' market corrections are commonplace.
'The markets correct 20% all the time, almost every 18 months. … This is nothing new for the S&P 500,' he said, adding that these corrections are often buying opportunities. 'It's a value deal.'
Professional investors commonly recommend 'buying the dip,' or investing during a downturn, as there are bargains to be had when stock prices fall.
The volatility in the markets is a byproduct of the administration's tariff policies, according to O'Leary.
'There's a lot of volatility and that's what you get when you take these kinds of actions,' he said. 'No administration has ever taken on 60 trade negotiations simultaneously, let alone China on top of that.'
O'Leary is well known for his long-term approach to investing, and nothing in his comments about tariffs or recession would indicate he's deviating from that.
In his book, 'Cold Hard Truth on Men, Women, and Money,' he recommends the individual investor pare down spending to invest as much as possible into a 401(k) or other retirement account.
By looking at your income and expenses over a 90-day period, you can see how much money you have to invest. If you want to invest more, you need to trim back your expenses.
O'Leary recommends sticking to this approach and not worrying about a possible future recession. 'I would argue right now that people that count out the American economy are constantly wrong all the time.'
Editor's note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
More From GOBankingRates
6 Big Shakeups Coming to Social Security in 2025
Sources
CNN, 'Harvard Sues Trump Admin Over Threats to Cut Funding; U.S. Markets Look to Rebound After Selloff; Nearly Half of U.S. Teens Say Social Media Hurts Their Generation.'
YouTube, CNBC Television, 'Powell on the possibility of a recession.'
This article originally appeared on GOBankingRates.com: Here's How Kevin O'Leary Is Investing During Tariff Turbulence: Should You Do the Same?
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Australia to reduce US beef import restrictions denounced by Trump as a ban
Australia to reduce US beef import restrictions denounced by Trump as a ban

The Hill

time20 minutes ago

  • The Hill

Australia to reduce US beef import restrictions denounced by Trump as a ban

MELBOURNE, Australia (AP) — Australia will reduce restrictions on U.S. beef imports after U.S. President Donald Trump criticized what he described as an Australian ban on the meat, Agriculture Minister Julie Collins said. Collins said Thursday that relaxing the restrictions designed to keep Australia free of mad cow disease, also known as bovine spongiform encephalopathy or BSE, among its cattle herds would not compromise biosecurity. 'Australia stands for open and free trade — our cattle industry has significantly benefited from this,' Collins said in a statement. Australia has allowed imports of beef grown in the United States since 2019. But Australia has not allowed imports from the U.S. of beef sourced from Canada or Mexico because of the disease risk. But the U.S. has recently introduced additional movement controls that identify and trace all cattle from Mexico and Canada to their farms of origin. US cattle import controls satisfy Australian authorities Australian authorities were 'satisfied the strengthened control measures put in place by the U.S. effectively manage biosecurity risks,' Collins said. The timing of the new, reduced restrictions has not been finalized. Trump attacked Australian import restrictions on U.S. beef when he announced in April that tariffs of at least 10% would be placed on Australian imports, with steel and aluminum facing a 50% tariff. 'Australia bans — and they're wonderful people, and wonderful everything — but they ban American beef,' Trump told reporters then. 'Yet we imported $3 billion of Australian beef from them just last year alone. They won't take any of our beef. They don't want it because they don't want it to affect their farmers and, you know, I don't blame them, but we're doing the same thing right now,' Trump added. Lawmaker fears appeasing Trump endangers Australian cattle industry Opposition lawmaker David Littleproud suspected the government was endangering Australia's cattle industry to appease Trump. 'I want to see the science and it should be predicated on science. I'm suspicious of the speed at which this has been done,' Littleproud told reporters. 'We need to give confidence to the industry, but also to you (the public): this is not just about animal welfare, this is about human welfare, this is about BSE potentially coming into this country and having a human impact, so I think it's important the government's very transparent about the science and I don't think it's even beyond the question to have an independent panel review that science to give confidence to everybody,' he added. Around 70% of Australian beef is exported. Producers fear that export market would vanish overnight if diseases including mad cow or foot-and-mouth disease infected Australian cattle. Will Evans, chief executive of Cattle Australia who represents more than 52,000 grass-fed beef producers across the nation, said he was confident the agriculture department had taken a cautious approach toward U.S. imports. 'The department's undertaken a technical scientific assessment and we have to put faith in them. They've made this assessment themselves. They've said: 'We've looked at this, we've looked at the best science, this is a decision that we feel comfortable with,'' Evans told the Australian Broadcasting Corp. 'When you have a 75 billion (Australian dollar, $50 billion) industry relying on them not making this mistake, I'm sure they've been very cautious in their decision-making,' he added. US beef prices rise because of drought and a domestic cattle shortage Beef prices have been rising in the U.S. due to factors that include drought and shrinking domestic herd numbers. The average price of a pound of ground beef in the U.S. rose to $6.12 in June, up nearly 12% from a year ago, according to U.S. government data. The average price of all uncooked beef steaks rose 8% to $11.49 per pound. Australia's opposition to any U.S. tariffs will be high on the agenda when Prime Minister Anthony Albanese secures his first face-to-face meeting with Trump. Albanese and Trump were to hold a one-on-one meeting on the sidelines of a Group of Seven summit in Canada last month, but the U.S. president left early. Albanese expects the pair will meet this year, although no date has been announced. The two countries have had a bilateral free trade deal for 20 years and the U.S. has maintained a trade surplus with Australia for decades.

World's largest olive oil producer warns U.S. consumers of a double whammy from Trump tariffs
World's largest olive oil producer warns U.S. consumers of a double whammy from Trump tariffs

CNBC

time21 minutes ago

  • CNBC

World's largest olive oil producer warns U.S. consumers of a double whammy from Trump tariffs

Spain's Deoleo, the world's largest olive oil producer, says U.S. President Donald Trump's threat to impose 30% tariffs on imports from the European Union could translate into higher prices for U.S. consumers — as well as limited access to a superfood staple. Trump has threatened to raise tariffs on the 27-member bloc from Aug. 1, in what would mark a steep jump from the current 10% duty. The EU has long been scrambling to reach a trade deal with the U.S. and is considering its options ahead of Trump's deadline, including the prospect of countermeasures. Huge uncertainty persists over whether the U.S. and EU can strike a deal over the coming days, although a blockbuster framework agreement between the U.S. and Japan has raised hopes of a breakthrough. Deoleo, the maker of household olive oil brands such as Bertolli and Carbonell, told CNBC that the Trump administration's trade measures could have an impact on American consumers, particularly given limited U.S. production. "It is worth noting that approximately 95% of the olive oil consumed in the U.S. is imported, so such policies will affect end users," Deoleo CEO Cristóbal Valdés told CNBC by email. The Spanish company said the U.S. accounts for more than a quarter of its total revenue, making it a strategically important market. Around 40,000 acres (16,187 hectares) of olives are planted exclusively in the U.S. for olive oil production, according to the American Olive Oil Producers Association. By comparison, the EU is known to be the leading producer, consumer and exporter of olive oil, with roughly 4 million hectares (9.88 million acres) dedicated to the cultivation of olive trees across the region. Most of the world's supply of olive oil comes from the Mediterranean, with southern European countries such as Spain, Italy and Greece among the world's leading producers of the precious commodity. Spain, in particular, is the biggest olive oil producer in the EU and a global reference for prices. As part of its preparation for a higher tariffs rate, Deoleo's Valdés said the company intends to ramp up its communication, marketing and consumer engagement efforts to ensure olive oil remains an everyday staple. "Beyond institutional dialogue, we are strengthening our value proposition in the U.S. through consumer awareness campaigns about the benefits of olive oil and a renewed commitment to our brands—especially Bertolli, which today represents trust and consistency for American consumers," Valdés said. Deoleo's chief executive also said the olive oil producer would continue to keep all strategic options open, while working on logistics and supply chain improvements to respond to different market scenarios. "However, beyond tactical decisions, our main priority is to protect American consumers' access to a food product that is essential to their health. Access to olive oil should not be penalized — it should be promoted," Valdés said. As U.S. tariffs on EU goods first came into effect in early April, analysts at commodity data firm Expana warned that a reduction in U.S. olive oil imports could have "serious repercussions" for the global market. They cited market players as saying that such a shift could create a supply glut in the EU, leading to further downward price pressure and intensifying competition among producers. It's not just olive oil exporters that have been rattled by Trump's latest tariff threats, however. Irish whiskey firms, Italian cheesemakers and French wine producers are among those who have sounded the alarm over the potential impact.

Tariffs Weigh on Eli Lilly Stock (LLY) Ahead of Earnings
Tariffs Weigh on Eli Lilly Stock (LLY) Ahead of Earnings

Business Insider

time32 minutes ago

  • Business Insider

Tariffs Weigh on Eli Lilly Stock (LLY) Ahead of Earnings

U.S. President Donald Trump's threats to impose tariffs on the pharmaceutical industry are weighing on Eli Lilly's (LLY) stock ahead of its second-quarter financial results on Aug. 7. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. The pharma sector had hoped that healthcare would be spared from President Trump's tariffs. However, that no longer appears to be the case with the Trump administration threatening import duties of up to 200%, news that has been a drag on Eli Lilly and other pharmaceutical stocks. So far, Eli Lilly has responded to the looming tariff threat by announcing that it will invest $27 billion to build four new manufacturing plants in the U.S. as demand for its weight-loss and diabetes drugs soars and the company develops new medications. Manufacturing Base The U.S. is already Eli Lilly's manufacturing base. Since 2020, the Indiana-based company has committed $50 billion to bolster its U.S. manufacturing. That investment has helped ease drug supply shortages of its popular prescription medications. Management at Eli Lilly has said that the majority of the company's drugs are made in America. Still, the looming threat of steep tariffs on the pharma sector has been weighing on LLY stock heading into the company's earnings, where expectations are high for strong sales and profits from the weight-loss drugs. LLY stock has risen 4% this year, underperforming the benchmark S&P 500 index. Is LLY Stock a Buy? The stock of Eli Lilly has a consensus Strong Buy rating among 19 Wall Street analysts. That rating is based on 16 Buy, two Hold, and one Sell recommendations issued in the last 12 months. The average LLY price target of $1,006.80 implies 26.07% upside from current levels.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store