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I still believe in all the catalysts that I touted for MGM Resorts International (MGM) for late this year–yes, the company’s new Macao casino will give the company more exposure to that market, yes, a wave of states legalizing sports gambling plays to MGM’s experience with that business in Las Vegas, and yes, the company does stand a very good chance of winning one of the first casino licenses in Japan.

But, first, MGM and the financial markets have to get past what is an escalating global trade war. All sides seem, at this point, to be interested in doubling down on new tariffs and other trade restrictions. The Macao businesses of U.S. casino operators such as MGM Resorts–and Las Vegas Sands (LVS) and Wynn Resorts (WYNN)–are great big inviting targets if China wants to retaliate for U.S. trade measures–without using the big (and politically problematic) club of higher tariffs.

I hate to sell with the stock down this much, but I do worry about the possibility of a very damaging one-off move targeting the U.S. casino companies with properties in Macao.

I’m selling the shares out of my Jubak Picks Portfolio with a 136% gain since I added them n May 4, 2012.

Full disclosure: I own shares of MGM Resorts International in my personal portfolios. I will be selling them 3 days after this is posted.