Caterpillar Sales Boom Can't Save It From Trade-War Carnage

The video discusses the recent performance of a stock, highlighting its decline over seven days, marking the worst run since 2015. It explores Caterpillar's exposure to the Chinese market, noting that 6% of its sales are in China, with most products manufactured locally. The discussion covers the potential risks of trade retaliation and the impact of global trade restrictions on economic growth. Despite concerns, experts believe domestic retaliation in China is unlikely. The video concludes with an analysis of how these factors could affect company growth and margins.

What recent trend did Caterpillar's stock experience?

• A record high

• A seven-day increase

• A seven-day decline

• Stability over the week

What percentage of Caterpillar's sales is attributed to China?

• 20%

• 10%

• 15%

• 6%

How does Caterpillar manage its production strategy in China?

• Manufactures locally for local and global markets

• Relies on third-party manufacturers

• Exports all products to Europe

• Imports all components from the US

What is a potential consequence of global trade restrictions for Caterpillar?

• Expansion into new markets

• Higher costs and lower margins

• Decreased production costs

• Increased market share

What has been Caterpillar's recent experience with economic recovery?

• Immediate recovery post-recession

• Robust recovery after four down years

• Continuous decline

• Stagnant growth