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Barron's On: Investing For A Trade War

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Barron's On: Investing For A Trade War

This weekend's Barron's cover story offers reasons why investors should not panic about the trade war.

Money managers, trade experts and market strategists put trade-related risks into perspective.

Other featured articles list stocks to ride out the trade war and look at the commodities getting hit hardest.

For this weekend's cover story, "The Trade War Will Make Stocks Scary. 5 Reasons Not to Panic," by Reshma Kapadia, Barron's asked money managers, trade experts and market strategists to put trade-related risks into perspective. It seems there are plenty of reasons not to hit the panic button.

An expert quoted in the article suggests: "If you were ever going to impose costs on the U.S. consumer, the time is when unemployment is at 50-year lows and inflation is a pancake."

Those that Barron's surveyed assessed the five biggest trade risks:

Trade tensions send markets into a tailspin

  • Trade tensions bring global growth to standstill
  • China's economy buckles under tariffs
  • China uses its currency as a weapon
  • China dumps Treasuries

See what they think the prospects are for each case and why investors should "put aside the playbook for a trade war and global recession for now, but be prepared for uncertainty and bouts of stock market volatility for months to come."

While the Wall Street consensus is that there will be a deal with China eventually, how do analysts expect the S&P 500 to react in the meantime?

How much are Apple Inc. (NASDAQ: AAPL), Cisco Systems, Inc. (NASDAQ: CSCO) and other specific stocks at risk?

Could tit-for-tat retaliation spill over into the conflict in the South China Sea, disputes over Iranian oil or North Korean issues?

And is there much hope for de-escalation when the U.S. and Chinese presidents meet at the Group of 20 meeting in June?

See also: Barron's Picks And Pans: Nordstrom, Pinterest, Take-Two Interactive And More

Some other stories featured in this weekend's Barron's that are also worth a look:

5 Cheap Stocks to Ride Out the Trade War

Why the Trade War Is Hitting a Trump-Country Commodity Hardest

At the time of this writing, the author had no position in the mentioned equities.

Keep up with all the latest breaking news and trading ideas by following Benzinga on Twitter.

Posted-In: Barron's tariffs trade warMedia Best of Benzinga

 

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