Manulife's Jeff Hull compares tariff tensions to pandemic and sees upside for Netflix, Spotify in subscription space
Market disruptions such as tariff uncertainty may create buying opportunities for investors, according to Jeff Hull, senior financial advisor at Manulife Wealth.
Speaking to BNN Bloomberg on Friday, Hull compared the current market environment to the early stages of the COVID-19 pandemic, which significantly disrupted global supply chains five years ago.
On the same day, US stock markets closed slightly higher after starting weak, breaking a four-week losing streak.
The broader equity declines leading up to Friday followed rising trade tensions between the US and other countries, fuelling concerns over inflation and the effects on consumers and businesses.
Hull said, “What people need to realize is to get great companies at a great price, you need fear in society a bit.”
He noted that this fear could stem from various sources, such as Donald Trump appearing nightly on television, temporary events, extreme weather, or even another pandemic.
He said discounted opportunities often arise during periods of market anxiety. “Sometimes it’s hard to get some of the world’s best businesses at a discount,” he noted.
Hull added that these opportunities usually appear during times of crisis or worry, and described fear as “false evidence appearing real,” explaining that emotional concerns often don’t align with reality.
Hull pointed to companies that performed well during the pandemic as potential beneficiaries in a trade war environment. He specifically mentioned firms in the subscription economy, including Netflix and Spotify.
“Under the threat of tariffs, whether they’re real or not, or on or off, these companies don’t have to worry about tariffs,” Hull said.
He pointed to Netflix as an example, noting it operates in the cloud through Amazon’s web service and faces no physical borders or shipping concerns.
There are no tariffs, transportation costs, or fuel expenses involved when streaming content.
