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What Happens to Your Investments When the Trade War Is Resolved?

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What Happens to Your Investments When the Trade War Is Resolved?

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http://profitableinvestingtips.com/stock-investing/what-happens-to-your-investments-when-the-trade-war-is-resolved

What Happens to Your Investments When the Trade War Is Resolved?

The threat of an ever-expanding trade war has been dragging down many investments in stocks. There are lots of doomsday scenarios out there predicting not only the collapse of the stock market but of the global economy. But, nobody wants a total disaster. Rather the Americans, Chinese, Europeans, and others all want the best deal they can get, short of creating a situation in which everyone loses. So, what happens to your investments when the trade war is resolved?

Economic Growth with Fewer Trade Worries

CNBC reports that Goldman Sachs sees a possible stock market surge. In response to questions from investors, Goldman looked at where to invest if trade tensions fall and the economy continues to perform well.

The looked at what would happen if trade tensions fade, the Federal Reserve stops raising rates after two or three hikes and economic growth continues to rise. Under such a scenario, Goldman’s estimate for S&P 500 2019 earnings per share would rise by 3 percent, to $175, and a lower-than-expected Treasury yield would enable a market price to earnings multiple of 18 times. This would lead to a year-end price target for the S&P 500 of 3,150, 11 percent higher than Friday’s close.

http://profitableinvestingtips.com/stock-investing/what-happens-to-your-investments-when-the-trade-war-is-resolved

What Happens to Your Investments When the Trade War Is Resolved?

The threat of an ever-expanding trade war has been dragging down many investments in stocks. There are lots of doomsday scenarios out there predicting not only the collapse of the stock market but of the global economy. But, nobody wants a total disaster. Rather the Americans, Chinese, Europeans, and others all want the best deal they can get, short of creating a situation in which everyone loses. So, what happens to your investments when the trade war is resolved?

Economic Growth with Fewer Trade Worries

CNBC reports that Goldman Sachs sees a possible stock market surge. In response to questions from investors, Goldman looked at where to invest if trade tensions fall and the economy continues to perform well.

The looked at what would happen if trade tensions fade, the Federal Reserve stops raising rates after two or three hikes and economic growth continues to rise. Under such a scenario, Goldman’s estimate for S&P 500 2019 earnings per share would rise by 3 percent, to $175, and a lower-than-expected Treasury yield would enable a market price to earnings multiple of 18 times. This would lead to a year-end price target for the S&P 500 of 3,150, 11 percent higher than Friday’s close.

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What Happens to Your Investments When the Trade War Is Resolved?

  1. 1. B y w w w . P r o f i t a b l e I n v e s t i n g T i p s . c o m What Happens to Your Investments When the Trade War Is Resolved?
  2. 2. http://profitableinvestingtips.com/stock-investing/what-happens-to-your-investments-when-the-trade-war-is-resolved The threat of an ever-expanding trade war has been dragging down many investments in stocks.
  3. 3. http://profitableinvestingtips.com/stock-investing/what-happens-to-your-investments-when-the-trade-war-is-resolved There are lots of doomsday scenarios out there predicting not only the collapse of the stock market but of the global economy.
  4. 4. http://profitableinvestingtips.com/stock-investing/what-happens-to-your-investments-when-the-trade-war-is-resolved But, nobody wants a total disaster. Rather the Americans, Chinese, Europeans, and others all want the best deal they can get, short of creating a situation in which everyone loses.
  5. 5. http://profitableinvestingtips.com/stock-investing/what-happens-to-your-investments-when-the-trade-war-is-resolved So, what happens to your investments when the trade war is resolved?
  6. 6. http://profitableinvestingtips.com/stock-investing/what-happens-to-your-investments-when-the-trade-war-is-resolved Economic Growth with Fewer Trade Worries
  7. 7. http://profitableinvestingtips.com/stock-investing/what-happens-to-your-investments-when-the-trade-war-is-resolved CNBC reports that Goldman Sachs sees a possible stock market surge.
  8. 8. http://profitableinvestingtips.com/stock-investing/what-happens-to-your-investments-when-the-trade-war-is-resolved In response to questions from investors, Goldman looked at where to invest if trade tensions fall and the economy continues to perform well.
  9. 9. http://profitableinvestingtips.com/stock-investing/what-happens-to-your-investments-when-the-trade-war-is-resolved The looked at what would happen if trade tensions fade, the Federal Reserve stops raising rates after two or three hikes and economic growth continues to rise.
  10. 10. http://profitableinvestingtips.com/stock-investing/what-happens-to-your-investments-when-the-trade-war-is-resolved Under such a scenario, Goldman’s estimate for S&P 500 2019 earnings per share would rise by 3 percent, to $175, and a lower-than-expected Treasury yield would enable a market price to earnings multiple of 18 times.
  11. 11. http://profitableinvestingtips.com/stock-investing/what-happens-to-your-investments-when-the-trade-war-is-resolved This would lead to a year-end price target for the S&P 500 of 3,150, 11 percent higher than Friday’s close.
  12. 12. http://profitableinvestingtips.com/stock-investing/what-happens-to-your-investments-when-the-trade-war-is-resolved Where would the growth, or recovery, occur in the event trade tensions ease off?
  13. 13. http://profitableinvestingtips.com/stock-investing/what-happens-to-your-investments-when-the-trade-war-is-resolved We wrote recently about companies hurt or at least threatened by trade worries.
  14. 14. http://profitableinvestingtips.com/stock-investing/what-happens-to-your-investments-when-the-trade-war-is-resolved Harley Davidson moving production out of the USA in response to a trade war was one.
  15. 15. http://profitableinvestingtips.com/stock-investing/what-happens-to-your-investments-when-the-trade-war-is-resolved The other was Boeing outsourcing production to retain foreign business and remain profitable.
  16. 16. http://profitableinvestingtips.com/stock-investing/what-happens-to-your-investments-when-the-trade-war-is-resolved Boeing is obviously the bigger issue as their exports rival the dollar value of all US agricultural exports.
  17. 17. http://profitableinvestingtips.com/stock-investing/what-happens-to-your-investments-when-the-trade-war-is-resolved If the threat of a trade war eases, Boeing will be a likely beneficiary.
  18. 18. http://profitableinvestingtips.com/stock-investing/what-happens-to-your-investments-when-the-trade-war-is-resolved And, then there are US food exporters like Tyson.
  19. 19. http://profitableinvestingtips.com/stock-investing/what-happens-to-your-investments-when-the-trade-war-is-resolved Tyson exports beef and poultry and has been hurt by the evolving trade war.
  20. 20. http://profitableinvestingtips.com/stock-investing/what-happens-to-your-investments-when-the-trade-war-is-resolved Seeking Alpha sees Tyson as underpriced in relation to its long term (intrinsic stock) value.
  21. 21. http://profitableinvestingtips.com/stock-investing/what-happens-to-your-investments-when-the-trade-war-is-resolved This morning, Quad 7 Capital’s BAD BEAT Investing discussed Tyson Foods (TSN) as a buy strong buy under $60.
  22. 22. http://profitableinvestingtips.com/stock-investing/what-happens-to-your-investments-when-the-trade-war-is-resolved Here is the deal. With fears over inflation, rising feed and labor costs, and international tariffs, investors have been jumping ship.
  23. 23. http://profitableinvestingtips.com/stock-investing/what-happens-to-your-investments-when-the-trade-war-is-resolved We believe at $59 a share, the Street is mispricing the stock.
  24. 24. http://profitableinvestingtips.com/stock-investing/what-happens-to-your-investments-when-the-trade-war-is-resolved In this column, we will describe what we are seeing in this leading world supplier of proteins to industry and retail supermarkets.
  25. 25. http://profitableinvestingtips.com/stock-investing/what-happens-to-your-investments-when-the-trade-war-is-resolved Currently, we have seen an extended selloff and we believe it is time to get long.
  26. 26. http://profitableinvestingtips.com/stock-investing/what-happens-to-your-investments-when-the-trade-war-is-resolved What happens to your investments in Tyson when the trade war is resolved?
  27. 27. http://profitableinvestingtips.com/stock-investing/what-happens-to-your-investments-when-the-trade-war-is-resolved Its exports will surge, its profits will increase, and its stock price will likely go up.
  28. 28. http://profitableinvestingtips.com/stock-investing/what-happens-to-your-investments-when-the-trade-war-is-resolved This may be the ideal sort of investment to make if you believe that cooler heads will eventually prevail and an all-out trade war will be avoided.
  29. 29. http://profitableinvestingtips.com/stock-investing/what-happens-to-your-investments-when-the-trade-war-is-resolved If you have been invested in US exporters who have been hurt by the threat of an all-out trade war and you believe that the trade war will fizzle instead of flare up, consider staying with those investments as they may well recover very nicely.

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