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Goldman has a new strategy for beating the market during the trade war

August 12, 2019

Via: CNBC

Goldman Sachs has a new battle plan for the trade war: Buy service-providing stocks and avoid goods-producing companies.

The strategy involves buying companies such as Microsoft, Amazon, Google and J.P. Morgan Chase because the U.S.-China trade war has hurt share price and fundamentals of goods-producing companies.

“Services stocks have less exposure to trade conflict given they have lower foreign input costs that might be subject to tariffs and lower non-US sales than Goods firms,” Goldman Sachs chief U.S. equity strategist David Kostin said in a note to clients.

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