Week 37: More Trade War Drama

There’s one thing markets do not like – uncertainty. There are usually two schools of thoughts when it comes to the markets.

One view is that this risk is already priced into the market.

Another view takes the stance that it is not priced in.

What does this mean?

It means there are three camps. Those that believe it is, the others that it believes it is not, and a third group – that it doesn’t matter if it is priced in or not.

Why is this important? Well it impacts decisions. Some of these decisions may directly impact you if you work for one of these companies. On the other hand, if you’re a sub-contractor to one of these companies their views will play a role in your orders over the next three-quarters.

It is important to find out what camp your buyers are in. If they feel that things are priced into the market then one strategy may be to secure a long-term agreement. This will match their mindset.

If your buyers are in the more fear based camp they may need some extra attention right now.

The best group is of course the middle because they’re going with the flow. 

The real question becomes – do you have a strategy for your sales over the next 18-months? If not, get one. Quick.

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