Trade protection doesn’t have to exclude U.S. growth stocks

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Trade protection doesn’t have to exclude U.S. growth stocks GlobeInvestor

The escalating U.S.-China trade war has sent dividend-rich sectors like utilities higher, but investors don’t need to get all defensive just yet, according to strategists who say there are plenty of growth stocks with some insulation from China.

“If you’re looking to avoid the pure dividend play and avoid the China trade narrative, you have to look at stocks that are a pure play on the U.S. economy,” said Peter Kenny, founder, Kenny’s Commentary LLC in New York. Online advertising platforms and cloud software are two technology segments that would not be directly affected by China tariffs, according to Daniel Morgan, portfolio manager at Synovus Trust in Atlanta.

Steve Lipper, senior investment strategist at Royce & Associates favors U.S.-facing companies offering services such as recruiting and merger advice due to a strong U.S. labor market and solid merger activity.

 

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