Market Update August 2019

"The trade-war FUD (Fear, Uncertainty and Doubt) is certainly rife with the US President’s latest attacks on China in the form of increased tariffs and the sharp devaluation of the Chinese Renminbi."
Market Update August 2019

The trade-war FUD (Fear, Uncertainty and Doubt) is certainly rife with the US President’s latest attacks on China in the form of increased tariffs and the sharp devaluation of the Chinese Renminbi.

This (in my opinon), provides us with an opportunity to purchase stocks that (again in my opinion) look to be rather immune from an ongoing trade war between the United States and China.

Amazon

Amazon provides a good entry price at any price sub $1750. The threat of a trade war provides a strong headwind to all US stocks and whilst Amazon is no exception, its products and services such as Amazon Prime, Prime Music, Prime Video, Whole Foods and AWS are well insulated.

It was also recently announced that Jeff Bezos has sold off $2.8 Billion worth of shares in the last week adding to more “concern” from analysts.

Square

The fintech company Square presents an interesting investment opportunity due to it’s innovative App, it’s Square Reader and it’s Cryptocurrency sales.

During the peak times of trade-war concern, it’s interesting to note that Bitcoin’s price has increased in loose correlation with US stock sell-offs. Square has recently announced it’s Bitcoin sales revenue doubled suggesting that crypto adoption could become more mainstream given the simplicity in purchasing through vendors such as Square.

Square does not have a Chinese presence with Tencent’s WeChat app being the preferred method of app-based payment processing.

The information contained in this news article is correct at the time of posting. It is the author’s subjective opinion and has not been prepared, taking into account your personal circumstances, objectives or needs and may be wrong for you. Please consult a Financial Advisor before taking any action in regards to anything produced on battalion.com

Share

Share on facebook
Share on twitter
Share on linkedin
Share on email

Comment