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Bursa Furniture Stocks Just Got Slammed – what is your next move?
Oof… stocks have taken a beating lately, thanks to those new US tariffs. If you’re holding Bursa-listed furniture stocks like I am, it feels like a double-whammy. Not only are we caught in the overall market drop, but companies with big US exposure are likely to see their earnings take a hit too.
But it's not just about short-term earnings. These tariffs also affect how investors value companies — because when uncertainty rises, so does the discount rate. That’s a double blow to valuations.
And let’s be real — no one knows how long this new trade order will take to settle. Will things ease up after the next US election? Or are we heading into a long-term shift in global trade?
If you’re trying to value companies in this environment (like I am), one approach I’ve been toying with is this: break the valuation into two parts. First, estimate the value over the next 2 to 4 years — maybe aligned with the US election cycle. Then, add on the value assuming some kind of “new normal” kicks in after that.
It’s not perfect, but it gives me a framework to think through the uncertainty instead of just reacting emotionally.
So — do we cut loss or hang in there? I haven’t made a final call yet, but I’ll share how I’m thinking it through. If you’re in the same boat, maybe it’ll help you too.