Trading stocks amid trade wars and lingering tensions
With the global economic climate already looking grim and the additional turmoil created by Trump’s war on China, other Asian economies that rely on exports are set to take a substantial hit in trade volume as well.
A vulnerable Chinese economy carries risks for South Korea, Taiwan and Japan according to expert economists. US and China being the world’s two most powerful economies and controlling the supply of most the world’s technology and electronics – could create further global slowdown in trade if the infighting continues.
The good news is that the stock market is resilient enough and a reasonably timed resolution and de-escalation could pave the way for a rapid recovery to normalcy.
While these may be clear indicators that investors will adopt a bearish bias towards Asian stocks which may continue to crumble under the downwards pressure – the US and EU stock markets are actually seeing some gains under their belt.
If you want to adjust your portfolio and minimize risk exposure, you should look into the stocks that are currently unaffected by the recent market volatility.
Technology giants like Apple, Amazon and Google obviously take the cake here but the cannabis industry has also been performing incredibly well with a potential for solid future growth. In fact, the US is aiming to increase spending on cannabis with more than $20 billion set to boost the production of cannabis pharmaceuticals and recreational products as legalization expands to more states across the country.
Apple (AAPL) the luxurious maker of everyone’s favorite smartphones and tablets is currently trading at $193.89 but revenue records are estimated to lag behind compared to last years results and hit the $250 billion mark. There is a slowing demand for new iPhones which pushed the company to shift its focus to its subscription-based services, however, even though fundamentals aren’t as strong as we would have hoped; investors who are looking for growth stocks can invest in AAPL for long-term returns.
Amazon (AMZN) stocks are always a safe bet and keeping up with the solid past performance, the EPS (Earnings per Share) ratings are off the charts, indicating a near 115% increase in recent reports while sales are rising as well. With a market cap of $936 billion, the stock price has jumped by 12% since the beginning of the month, reaching $1900. Also, the quarterly earnings statements are set to come out by late July, and as such we can expect the healthy rally to continue.
A long-term focused portfolio can’t be without Google (GOOGL) stocks of course as it’s one of the best stocks to buy regardless of the current climate. Admittedly, GOOGL has been somewhat impacted by the shifting market sentiment but it still remains one of the top performers this year with more than 14% of all investors holding the stock. If we take a look at this month’s performance, GOOGLE is up by 6.5% which is nothing to scoff at.
As far as the cannabis industry is concerned, you can find multiple cannabis stocks listed in Nasdaq and NYSE, with the most prominent being Aurora Cannabis (ACB) and Canopy Growth (CGC)
Aurora Cannabis Inc. is one of the world’s largest producers of marijuana only lagging slightly behind Canopy Growth. While others are mainly focusing on medicinal cannabis, Aurora is also pivoting to recreational marijuana which is guaranteed to boost sales by a large margin.
Canopy Growth Corp. is the leader in cannabis production which is reflected by its sales that achieved a 300% increase in the past year alone. The medical cannabis space may still be in its infancy, but investors are looking confident in its future growth as well as most analysts who rate the stock as a must buy.
While high reward online stocks usually come with the appropriate risk, there are still viable opportunities for conservative investors even with the turmoil in the current geopolitical climate.
Besides, proper diversification is always a valid risk management strategy and trade wars or not, trading stocks can benefit greatly from portfolio adjustments into different markets and sectors. The tech industry is an ideal candidate with multiple companies showing reliable performance year-over-year, but investors are advised to look into other sectors as well. The cannabis industry is only one of the promising opportunities that seems poised to exceed our expectations this year.