facebookWith the US and China in talks to potentially end the trade war, are there any stocks or industries that would be advisable to look into? - Seedly

Anonymous

05 Mar 2020

General Investing

With the US and China in talks to potentially end the trade war, are there any stocks or industries that would be advisable to look into?

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I feel that we as mostly retail investors should stick to time honored strategies.

That means for me long term buy and hold passive indexing ETFs.

That would mean in my case for SP500 with f.ex. VOO, IVV, or SPDR, attention to that one with the lowest fees.

For China there are many possibilities as to passive indexing: f.ex. MSCI China, FTSE China A50, CSI 300 among others.

I personally like also the Golden Dragon ETF, ticker: PGJ.

Then my personal focus (though with probably much higher risk and volatility!) is more on the technology side.

For U.S. that could be tickers: VGT, QQQ; and for China my favorite is ticker CQQQ.

There will be also coming an ETF on the technology driven, new chinese Star Market 50 Index soon. But that one should have a very, very high risk, ar least an interesting sidenote maybe.​​​

Key industries affected by the trade war are the automobile and soybean industries - especially soybeans given that China is (or was before the trade war), US's largest importer of soybean. If trade talks are favourable and end promptly on 1st March with win-win agreements it can be almost be expected that the soybean industry's demand will be greatly boosted once more in the United States. Possible companies that you can look into are Bunge Limited (BG), a Us based company with emphasis on agribusiness and a main produce that they deal with is soybeans. Currently, Bunge's stock prices have fallen to USD 52 at the time of writing, which is about 2 dollars shy of the 52-week low. This could prove to be a worthy investment that can be monitored on your watchlist.

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