Weathering the Trade Storm: Morgan Stanley's Picks for Tariff-Resilient Stocks
Morgan Stanley identifies the following stocks as promising tax-advantaged investments.
Tariff tensions are shaking the market to its core, with many stocks plummeting like ships face to the wind. But not all vessels are doomed, as Morgan Stanley experts have unveiled a list of stocks that could fare well amid the tariff games.
Stocks that Thrive in the Tariff Maelstrom
Consumer Goods Galore:
- Ferrari
- McDonald's
- Domino's Pizza
- Yum Brands
- Restaurant Brands International
- Wingstop
- SharkNinja
- Hasbro
- Yeti Holdings
- Mattel
- Asbury Automotive
- AutoNation
- Group 1 Automotive
- Lithia Motors
- Penske
- Sonic Automotive
- Bath & Body Works
- Levi Strauss
- On Holding
Food Industry Feast:
- Performance Food Group
- Albertsons
- Kroger
- Grocery Outlet
Industrial Revolution Revamp:
- Rockwell Automation
- Knight-Swift Transportation
- TFI International
- Schneider National
- Werner Enterprises
- Ryder
- ARCB ArcBest
- Old Dominion Freight
- Kornit Digital
- Westinghouse Air Brake
- Fortive
Metal Matters:
- Martin Marietta
- Vulcan
- Nucor
- Steel Dynamics
- Commercial Metals Co.
- U.S. Steel
- Cleveland-Cliffs
Real Estate Riches:
- Prologis
- Lineage
- EastGroup Properties
Additionally, check out these articles for further insights:
- Tariffs: DANGER ZONE awaits markets / Gold and the chosen few still soaring / Johannes Hirsch
The Raw Truth: To Buy or Hold?
In the time of trade disputes, panic has gripped the market, leading to a mad scramble to jettison assets. However, not all stocks are at the mercy of tariffs. The stocks listed above from Morgan Stanley show those that can withstand the tempest. But should you throw your hat in the ring, or is it wiser to keep your powder dry?
Needless to say, it's ill-advised to pile in recklessly. Though the saying goes "buy when there's blood in the streets," the duration of this crash remains a mystery. On the other hand, don't let anxiety drive you to sell everything. Evaluate well-performing stocks and divide your losses, creating a war chest. If you've kept around 20 to 30% cash, you can set sail again soon. Remember, renegotiations are on the table, and a quick turnaround can be frustrating if you're not on board.
Plus, there's opportunity to make a buck with relatively "safe" stocks in the interim. Evaluate the stocks in the list above, ensuring the upward trend remains intact, the valuation is reasonable, and they haven't crashed yet. If the stars align, a small investment may be beneficial.
Also read: Tariffs Take the Tumble: Apple, Amazon, Nvidia, and Others in Free Fall - What's Next?
or: XRP, Ethereum, Solana, Cardano: Is This the Perfect Time to Dive into Cryptocurrencies?
- Despite the chaos brought by tariff tensions, some stocks are thriving, such as Ferrari, McDonald's, Domino's Pizza, and Yeti Holdings, which were among the tariff-resilient stocks identified by Morgan Stanley.
- In the middle of the trade disputes, it's crucial to weigh the pros and cons before investing, as not all stocks are equally affected by tariffs.
- If considering an investment, it's important to ensure that the stocks, like those on the Morgan Stanley list, still have an upward trend, are reasonably valued, and haven't experienced a major crash yet.
- Keeping around 20 to 30% cash can provide a war chest for returning to the stock market once the renegotiations are finalized and the market recovers.
