Dan Crowe, co-portfolio manager on William Blair’s Small-Mid Cap Growth and Mid Cap Growth strategies, sat down with Investment Europe recently and discussed three potential outcomes that could arise from U.S. President Donald Trump’s order to impose tariffs on steel and aluminum imports. Crowe highlighted three possible scenarios:

     1. Just a bunch of “noise” with little reaction from other countries

Crowe points out that a very small number of U.S. employees (around 1%) are directly and indirectly affected by the steel tariffs, and other countries may decide it’s not such a big deal.

     2. Retaliatory tariffs

The European Union, China, and other countries could implement their own tariff policies to retaliate.

     3. A full blown trade war

“This would leave nobody unscathed,” Crowe said.

There’s also a possibility that Trump could impose additional tariffs, and more tariffs would mean more uncertainty. With greater uncertainty, investors may start to look closer at the risks involved with individual companies. In such a situation, Crowe said he believes the strategies he manages may benefit from the high-quality companies the portfolios hold. High-quality companies can help provide downside protection.

The article also discussed rising input costs for U.S. companies along with significant wage growth, noting that some companies can pass rising costs along to their customers while others cannot. Rising wages are a sign of a growing economy, so the companies that can pass on rising costs may also benefit from stronger demand for their products.

Read Investment Europe article

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Please carefully consider the Funds’ investment objective, risks, charges, and expenses before investing. This and other information is contained in the Funds’ prospectus and summary prospectus, which you may obtain by calling +1 800 742 7272. Read the prospectus and summary prospectus carefully before investing. Investing includes the risk of loss.

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Factual information has been taken from sources we believe to be reliable, but its accuracy, completeness or interpretation cannot be guaranteed. Investments are subject to market risk. Forecasts, estimates, and certain information contained herein are based upon proprietary research and should not be interpreted as investment advice, as an offer or solicitation, nor as the purchase or sale of any financial instrument. Statements concerning financial market trends are based on current market conditions, which will fluctuate.

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Copyright © 2019 William Blair & Company, L.L.C. "William Blair” is a registered trademark of William Blair & Company, L.L.C. No part of this material may be reproduced in any form, or referred to in any other publication, without express written consent.

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Please carefully consider the Funds’ investment objective, risks, charges, and expenses before investing. This and other information is contained in the Funds’ prospectus and summary prospectus, which you may obtain by calling +1 800 742 7272. Read the prospectus and summary prospectus carefully before investing. Investing includes the risk of loss.

Any statements or opinions expressed are those of the author as of the date of publication, are subject to change without notice as economic and markets conditions dictate, and may not reflect the opinions of other investment teams within William Blair Investment Management, LLC or the Investment Management Division of William Blair & Company, L.L.C.

This content is for informational and educational purposes only and not intended as investment advice or a recommendation to buy or sell any security. Investment advice and recommendations can be provided only after careful consideration of an investor’s objectives, guidelines, and restrictions.

Factual information has been taken from sources we believe to be reliable, but its accuracy, completeness or interpretation cannot be guaranteed. Investments are subject to market risk. Forecasts, estimates, and certain information contained herein are based upon proprietary research and should not be interpreted as investment advice, as an offer or solicitation, nor as the purchase or sale of any financial instrument. Statements concerning financial market trends are based on current market conditions, which will fluctuate.

William Blair does not provide legal or tax advice. Please consult your tax and/or legal counsel for specific tax questions and concerns.

Distributed by William Blair & Company, L.L.C., member FINRA/SIPC.

Copyright © 2019 William Blair & Company, L.L.C. "William Blair” is a registered trademark of William Blair & Company, L.L.C. No part of this material may be reproduced in any form, or referred to in any other publication, without express written consent.

Statement of Financial Condition | NMS Rule 605 & 606 | Business Continuity Plan | UK Stewardship Code
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