5 Top Stocks To Survive The Wall Street Bloodbath

The United States and China are at a deadlock over trade negotiations as President Trump continues to demand concrete changes to Chinese laws, while Beijing has refused the same. The tussle between the superpowers is far from over, not boding well for corporates as well as the economy.  

In such a scenario, investing in low-beta defensive companies seems prudent. Such stocks provide risk-adjusted returns, consistent dividend, and steady earnings, regardless of the state of the equity market.

Investors Brace for China Retaliation to U.S. Tariffs

Investors are worried about Trump’s chief economic advisor’s warning that China might retaliate against the higher tariffs Washington imposed last week. Trade negotiations between the world’s largest economies couldn’t end in a deal, even though Treasury Secretary Steven Mnuchin said that the talks were “constructive.”

China’s Commerce Ministry had warned that they would retaliate by imposing "necessary countermeasures" if higher tariffs were put into effect. Unfortunately, tariffs on Chinese goods were raised to 25% from 10%.

The situation may worsen as Trump threatened to levy tariffs on all Chinese goods with America. And this means imposing tariffs on the remaining $325-billion worth of Chinese products. His moves will invariably affect more than 5,000 China-made products, including fresh and frozen foods, chemicals, textiles, metalwork, building materials, electronics, and consumer goods.

Trump said that Beijing “broke the deal.” Trump criticized trade imbalances between the countries. Protection of intellectual property rights, by the way, continues to be a bone of contention for the economies. Beijing, however, remained defiant. The People’s Daily, a newspaper controlled by the Chinese ruling Communist Party said that “at no time will China forfeit the country’s respect, and no one should expect China to swallow bitter fruit that harms its core interests.”

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