Markets

Zacks Market Edge Highlights: Vale, Sina, Tencent, Facebook and Twitter

An image of a smartphone and a pen
Credit: Shutterstock photo

For Immediate Release

Chicago, IL - March 8, 2018 - Zacks Market Edge is a podcast hosted weekly by Zacks Stock Strategist Tracey Ryniec. Every week, Tracey will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life. To listen to the podcast, click here: ( https://www.zacks.com/stock/news/294812/where-to-invest-to-ride-out-the-stock-market-volatility )

Where to Invest to Ride Out Stock Market Volatility

Welcome to Episode #122 of the Zacks Market Edge Podcast.

Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.

In this episode, Zacks Chief Equity Strategist, and PhD economist, John Blank, joins the discussion on where, if anywhere, investors can hide out during market volatility.

Trade Wars? What's That?

Suddenly, there are a lot of unknowns, especially on trade. Not only has President Trump announced that he is going to put new tariffs on steel and aluminum, but the EU has already readied a list of retaliation tariffs if the US goes through with the move.

At the same time, there's also discussion about NAFTA renegotiations, trade talk with the UK, now that they're leaving the EU their trade deals have to be renegotiated, and there are other surprise events like White House Economic Advisor Gary Cohn resigning.

This has caused volatility to return to the stock market.

Who Could Get Hurt

Retaliation from the EU and Asia could come in the form of tariffs on prized US consumer goods like Harley Davidson motorcycles, food products and popular shoes and clothing.

Other big equipment manufacturers, like Boeing and Caterpillar, could also get hit if their input costs rise.

If you're feeling nervous, is there anywhere to hide that might be smoother waters?

Stocks that Might Give Investors the Edge

1. John likes some of the big materials plays as a contrarian investment like ValeVALE , a big Brazilian iron ore manufacturer, which ships iron ore to China. It's cheap, with a forward P/E of just 11 and no one is paying any attention to it right now. It's a contrarian pick.

2. SinaSINA owns Weibo, the Twitter of China. It's used domestically in China. How will it be impacted by a trade war? It definitely won't be as severe as someone making a consumer product like an automobile.

3. TencentTCEHY owns WeChat, which is China's equivalent to Facebook. It has nearly a billion users. Much like Sina, it shouldn't see huge impacts from a trade war on its business.

4. FacebookFB also doesn't make a product that could see a tariff unless the EU decides to tax Instagram in some way. But that's unlikely.

5. Similarly, TwitterTWTR operates on the Internet as well. It should be able to ride out a trade war.

Tracey also likes the small community banks, which mostly provide services to local customers and businesses through commercial loans and mortgages.

What other industries and stocks do Tracey and John like, and dislike, if a trade war breaks out?

Tune into this week's podcast to find out.

[In full disclosure, the author of this article owns shares of TCEHY and FB in her personal portfolio.]

Don't Even Think About Buying Bitcoin Until You Read This

The most popular cryptocurrency skyrocketed last year, giving some investors the chance to bank 20X returns or even more. Those gains, however, came with serious volatility and risk. Bitcoin sank 25% or more 3 times in 2017.

Zacks' has just released a new Special Report to help readers capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.

See 4 crypto-related stocks now >> .

Follow us on Twitter: https://twitter.com/zacksresearch

Join us on Facebook: https://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

Media Contact

Zacks Investment Research

800-767-3771 ext. 9339

support@zacks.com

https://www.zacks.com/performance

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Sina Corporation (SINA): Free Stock Analysis Report

Facebook, Inc. (FB): Free Stock Analysis Report

Tencent Holding Ltd. (TCEHY): Free Stock Analysis Report

Twitter, Inc. (TWTR): Free Stock Analysis Report

VALE S.A. (VALE): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

TWTR FB TCEHY SINA VALE

Other Topics

Stocks

Latest Markets Videos

    Zacks

    Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

    Learn More