Tariffs are hitting nearly every sector, but a few industries may offer safer ground for your money.
Transcript:
ROSS MAYFIELD: As for stocks and sectors that will be hit hard by the trade war, I mean, it’s pretty broad. You know, we’ve created a global trading system over the last 40 plus years where almost every sector of industry is in some way reliant on other countries, either for parts, for labor, for construction, for distribution. So it’s very difficult to find a sector that’s untouched or an industry that’s untouched by the global trade war. Especially when you consider, the reciprocal tariffs on 50 plus countries, many of whom are big trading partners.
You know, if you’re looking for areas that are a bit less levered to the trade war, you know, I would look to things that have more structural drivers in place. So we were looking at some of the industries that outperformed the S&P in the downturn and on the upswing. And some of those that came to mind were software, aerospace and defense entertainment. You know, some of those sectors that, Yes, there are cross border transactions, but are more structurally driven by either a U.S. consumer or a deglobalization theme in the case of aerospace and defense. So it’s hard to find truly protected industries. Even small cap companies and small businesses do a lot of importing. So you want to look for the trades that have more structural tailwinds that can kind of withstand the volatility of the next couple of months.
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