5 Broker-Friendly Stocks To Brave Escalating Trade War Fears
The possibility of an all-out trade war between the world’s two biggest economies — United States and China — has resulted in markets being volatile of late. President Trump imposed steep tariffs on China with the threat of more to come if China decides to retaliate.
In fact, it is not only China but fears pertaining to a global trade war that have gripped investors. In June, President Trump attacked Canada and other U.S. allies on this front through a series of tweets. After the EU announced that from Jun 22 import tariffs of more than $3.2 billion will be levied on a variety of American products, Trump retaliated with auto tariffs.
Trade wars are certainly not good for the economy and squeeze corporate profit margins. Consequently, this ongoing trade tension is weighing on investors’ risk appetite.
Broker Advice – The Way to Go in this Scenario
In view of the prevalent uncertainty, the task of building a portfolio of stocks for handsome returns is by no means an easy task. Furthermore, with a huge number of stocks present in the market at any point of time, spotting potential outperformers is tough for individual investors. In the absence of proper guidance, identifying a winning stock is akin to searching for ‘a needle in a haystack’.
Additionally, with time at a premium these days, it is next to impossible for investors to go through the extensive process. Given this backdrop, it is in the best interest of investors to seek guidance from “experts in the field." The concerned experts are brokers.
Brokers have a deeper insight into what’s happening in a particular company along with better understanding of the overall sector and the industry.
To attain their objective, they go through minute details of the publicly available financial documents apart from attending company conference calls and other presentations. Broker opinion should thus act as a valuable guide for investors while deciding their course of action (buy, sell or hold) on a particular stock.
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