Selling Caterpillar on the President’s tariff announcement

I don’t think there’s any point to waiting around to see how quickly or fiercely China will retaliate against U.S. exporters after today’s announcement that the United States will put a 25% tariff on Chinese (and other imported) steel and a 10% tariff on Chinese (and other imported) aluminum.

Caterpillar (CAT) is a stock that is obviously caught in the crosshairs–especially if the Trump administration provokes a more generalized round of global trade sanctions and tariffs from China and the European Union.

So I’m selling the stock out of my Jubak Picks portfolio. After today’s3.73 % drop in the share price, I’ve got an 11.64% loss on this position since I added Caterpillar to the portfolio on January 24.

There’s a saying that when two elephants fight, the mice need to run out of the way. If we are headed to some sort of a China/EU/U.S. trade war, I don’t want to be a heedless mouse.