https://s4.reutersmedia.net/resources/r/?m=02&d=20170914&t=2&i=1201324121&w=&fh=545px&fw=&ll=&pl=&sq=&r=LYNXNPED8C1Z8

Is Your Money Safe in Tech and Defense Stocks Safe After Trump’s Interference?

September 14, 2017
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Tech and aerospace investors were excited after President Trump was elected. The President had given plenty of indication that defence spending was coming and his inclusion of tech giants such as Elon Musk on his business council showed that big tech would likely flourish as well.

However, in another example of his “Putting America First” strategy, “U.S. President Donald Trump blocked a Chinese-backed private equity firm from buying a U.S.-based chipmaker on Wednesday.” Via reuters.com.

The move shows while Trump may be all about American companies doing well within the States, as soon as their interests lie elsewhere they should not ask for any help. “Trump’s decision ends a prolonged campaign by Canyon Bridge and Lattice to seal the deal. Canyon Bridge and Lattice had spent more than eight months trying in vain to persuade CFIUS to clear the acquisition.”

There are also U.S.-China relations to consider.

“The announcement comes at a sensitive time for U.S.-China relations, which are already strained over trade issues and North Korea. The Chinese Communist Party is also preparing to hold its once-every-five-years Congress in October.”

With all of these questions left about which companies can get bough by foreign companies, investors should look at their portfolios and consider if some of their assets could face the same issues.

Read more at reuters.com.

 

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