As excise talk heats up, so do fears of a trade war.
“There’s no winner when you get a tariff battle, because typically you get retaliation,” Joe Duran, founding helpmeet and chief executive officer of United Capital, said Tuesday on CNBC’s “Power Lunch.”
But if President Donald Trump’s proffered tariffs — 25 percent on steel and 10 percent on aluminum — come to pass and a trade war becomes a reality, financial experts have some tilts on how to protect your assets.
1. Identify Risks
Reassess the existing endanger in your portfolio, Duran said.
“Look at the beta on your portfolio,” he put about. “Make sure your mix of cash, bonds and stocks reflects something you can refer to through, regardless of what the market does.”
2. Diversify your portfolio
There are diverse areas you can invest in, Duran said.
“Interestingly enough, if we have duties, small caps will do better, because they don’t typically bring into the world as much complexity as these mega caps,” he said.
Duran also praises investing in stocks. “Look at companies that benefit from a emasculate dollar,” he said. “All of this [trade wars] eventually is not going to shift the trend, which we’ve seen, which is a weakening dollar.”
3. Put money in financials and technology
Financials and technology are calm good places to be, said Kirk Hartman, global chief investment gendarme at Wells Fargo Asset Management.
“Technology is what’s driving this continuous economy, and in a lot of ways is driving the market,” Hartman told said on “Power Lunch.” “Technology, per say, is not very affected by tariffs.”
Mark Luschini, chief investment strategist at Janney Montgomery Scott, also said on the program that software technology “be biases to get a disproportional benefit from capital expenditures by businesses that require age capital stocks.”
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