Investors Overlooking Potential Trade War Impact on Corporations? - Real News Now

The US trade war is raging with China. Experts point to the importance of the internal market, which also offers investors opportunities.

Investors Overlooking Potential Trade War Impact on Corporations? - Real News Now

Many believe that investors in the American stock market might be underestimating the potential impact trade conflicts could have on the profits of corporations. The economic indicators paint a rather disconcerting image about the valuations of stocks. The capital expenditure plans of U.S based businesses have turned negative – an occurrence seen only three other times in the past twenty years. The consumer sentiment index, compiled by the Unive…

1. Defensive strategies: adapting your portfolio to volatility Protecting your capital is essential. This does not mean converting everything into cash, but rather focusing on: ● Companies with stable cash flows: it is better to focus on companies that generate profits even in difficult times; they generally have high operating margins, few debts and predictable dividends; ● Low volatility sectors: health, public services, food; these sectors re…