I'm not sure what the general consensus is but as a retail investor, there isn't a particular strategy that I adopt per se. However, what I propose is that you evaluate your current portfolio's exposure to these macroeconomic risks; For example, reduce your exposure in equities that are susceptible/easily affected by these negative macroeconomic events and diversify them, increasing exposure to equities that may benefit from some of the positive macroeconomic events such as the increasing likelihood of a resolution of the trade war between US and China.
An example i would like to raise here that you can potential increase your exposure in Apple (AAPL), as China is Apple's third-largest market, with nearly $52 billion in sales in the company's most recent fiscal year, mostly from iPhone sales; or even in Caterpillar Inc. (CAT), which is a US based company which share price tanked in 2018. Even though China accounts for less than 10% of revenue, but there is no question that tariffs and the potential for a slowdown in China are weighing heavily on the stock. Hence, a cordial and reconcilitary shift in tone between US and China in the trade war could be a good time to allocate your resouces into such equities.
On the flipside, the risk of a no-deal Brexit could leave many companies/industries such as the automotive and aviation vulnerable as a no-deal Brexit would mean that UK would have to face the EU’s external tariffs and the price of goods could go up as businesses would have to place tariffs on goods imported from the EU, hurting profitability, which in turn causes share prices to drop.
Hope this helps!
I'm not sure what the general consensus is but as a retail investor, there isn't a particular strategy that I adopt per se. However, what I propose is that you evaluate your current portfolio's exposure to these macroeconomic risks; For example, reduce your exposure in equities that are susceptible/easily affected by these negative macroeconomic events and diversify them, increasing exposure to equities that may benefit from some of the positive macroeconomic events such as the increasing likelihood of a resolution of the trade war between US and China.
An example i would like to raise here that you can potential increase your exposure in Apple (AAPL), as China is Apple's third-largest market, with nearly $52 billion in sales in the company's most recent fiscal year, mostly from iPhone sales; or even in Caterpillar Inc. (CAT), which is a US based company which share price tanked in 2018. Even though China accounts for less than 10% of revenue, but there is no question that tariffs and the potential for a slowdown in China are weighing heavily on the stock. Hence, a cordial and reconcilitary shift in tone between US and China in the trade war could be a good time to allocate your resouces into such equities.
On the flipside, the risk of a no-deal Brexit could leave many companies/industries such as the automotive and aviation vulnerable as a no-deal Brexit would mean that UK would have to face the EU’s external tariffs and the price of goods could go up as businesses would have to place tariffs on goods imported from the EU, hurting profitability, which in turn causes share prices to drop.
Hope this helps!