The definitive collection of the best investing stories Business Insider published during the week ended September 15. Investors happily greeted the news of a new C-suite hire. Trade ideas ladies and gentlemen please
Risk sentiment gently buoying risk markets today, but it’s all about the Fed today (1800GMT). So, not expecting a whole lot of action. Having said that oil is seeing some upside on production shutdowns due to hurricane Sally and a surprise draw in the inventory data. with gold, so what are you planning today?
By Giles Coghlan A three-person panel of WTO trade experts said Washington broke with global regulations in 2018 when it slapped more than $200 billion in levies on a slew of Chinese goods. Since March 2018, the United States has imposed tariffs on $400 billion in Chinese exports.
Hello everyone! Welcome to this weekly roundup of Investing stories from deputy editor Joe Ciolli. Please subscribe here to get this newsletter in your inbox every week.
It’s a tech stock world and we’re all just living in it. Look no further than the last couple weeks of market action for evidence of that.
Pushed to record-setting extremes, tech shares finally showed signs of vulnerability, and dragged the whole market down with them. Subsequent attempts at recovery have also been led by the tech cohort.
The equity-strategy team at Morgan Stanley thinks these sharp, concentrated price swings have created dislocations in the market — and thereby opportunities for investors. In a recent note to clients, the firm argued that the drivers of the stock market’s record-setting summer have been completely reshuffled, and laid out three foolproof strategies to take advantage.
Tom Lee of Fundstrat Global Advisors — who called the stock market’s swift summer recovery from multiyear lows — also has views on the rattled market landscape. He sees nine bullish forces pushing stocks higher from current levels, and even has a basket of stocks designed to benefit in particular from that rally.
Andrew Slimmon, a senior portfolio manager at Morgan Stanley Investment Management, recently urged tech investors to stay the course through volatile times. He also revealed to Business Insider where he’s finding opportunity in the sector, which is now oh-so-slightly more attractive on a valuation basis.
And for those looking to get ahead of the inevitable next stock downturn, James DiChiaro — co-manager of the $1.3 billion BNY Mellon Core Plus fund — has a bond-focused hedging strategy ready for deployment.
Going beyond this smorgasbord of actionable advice, see below Business Insider’s best Investing stories of the week. They include a wide array of additional recommendations, strategies, and tips for navigating uncertainty.
Thanks for reading!
Oliver Kell, a US Investing Championship contender, pieced together his trading strategy by borrowing tactics from the most renowned investors. He’s in third place in the 2020 competition, with a 359.4% return through July.
Kell refers to his trading methodology as a “techno-fundamental trend follower” and looks to trade companies that are changing the world as we know it. He listed three stocks that have helped contribute to his extraordinary performance.
Read the full story here:
Bernstein strategist Inigo Fraser-Jenkins argued recently that record-low inventory levels could snap back and support value stocks. He and his team outlined a three-part value trade to take advantage of the potential reversion.
Read the full story here:
Seeking experts who are willing to name names? Look no further:
- Buy these 16 tech stocks that are beaten down from the pandemic and now primed for explosive growth in the months ahead, Stifel says
- UBS says buy these 17 ‘superstar’ stocks poised to soar as they use AI technology to drive market-beating growth
- Buy these 30 stocks that offer the best bargains for strong sales and earnings growth in a pricey market, Credit Suisse says
“We’re starting to see that some of these cyclical sectors are starting to come to life. I think these reopening stocks have more upside to them than do the Nasdaq and the big tech stocks.”
— Andrew Slimmon — a senior portfolio manager at Morgan Stanley Investment Management — discussing where he sees opportunity within the tech sector, on which he’s broadly bullish
Author: Joe Ciolli
Why Marijuana Stock HEXO Smoked the Market on Tuesday
Shares of Canada-based marijuana company HEXO (NYSE:HEXO) rose nearly 6% higher Tuesday because of a hire. The company announced after market close on Monday that it has named a new CFO; investors were clearly impressed by the appointment.
The new denizen of HEXO’s C-suite is Trent MacDonald, who is to begin his tenure at some point over the next few months (the company didn’t get specific, as he is required to go through a vetting process with marijuana industry regulator Health Canada).
MacDonald brings wide experience to the company, given his previous work. He was most recently CFO of privately held Rx Drug Mart. He was also vice president finance of bookstore chain operator Indigo, and served in a similar capacity at food retailer Sobeys. He replaces Stephen Burwash as HEXO’s CFO.
Image source: Getty Images.
In HEXO’s press release heralding MacDonald’s hiring, CEO Sebastien St-Louis said, “As our business grows and we execute our strategic plan, the Board and I felt it important to ensure that our management team have the skill set most beneficial for HEXO.”
Corporate marijuana is not only a relatively new industry, it’s an industry that touches several different complimentary sectors (healthcare and retail, chiefly). Nabbing a top manager who’s done time in the trenches of more than one of these fields has real potential to benefit any operator, particularly considering the cannabis sector’s many struggles of late.
Author: Eric Volkman
Trade ideas thread – European session 16 September 2020
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WTO says U.S. tariffs on Chinese goods violated international trade rules
US President Donald Trump and Chinas Vice Premier Liu He, the country’s top trade negotiator, hold a press conference before they sign a trade agreement with the US and China during a ceremony in the East Room of the White House in Washington, DC on January 15, 2020.
Saul Loeb | AFP | Getty Images
NEW YORK — The World Trade Organization ruled Tuesday that additional tariffs imposed in 2018 by the United States on Chinese goods violated international trading rules, a blow to the Trump administration’s trade war against the world’s second-largest economy.
A three-person panel of WTO trade experts said Washington broke with global regulations in 2018 when it slapped more than $200 billion in levies on a slew of Chinese goods. Since March 2018, the U.S. has imposed tariffs on $400 billion in Chinese exports.
“The United States has not met its burden of demonstrating that the measures are provisionally justified,” the panel said in a report. The panel offered an additional observation, saying the group was “very much aware of the wider context in which the WTO system currently operates, which is one reflecting a range of unprecedented global trade tensions.”
The Chinese Embassy in Washington did not immediately respond to CNBC’s request for comment.
“The multilateral trading system with the WTO at its core is the cornerstone of international trade,” a spokesperson for China’s Ministry of Commerce told reporters during a news conference.
“China has always firmly supported and maintained this cornerstone and respected WTO rules and rulings,” the spokesperson said, adding that Beijing “hopes that the United States will fully respect the rulings of the expert panel and the rules-based multilateral trading system, take practical actions to meet China and other WTO members, jointly maintain the multilateral trading system, and promote the stable and healthy development of the world economy.”
The Trump administration has previously claimed that the tariffs on China were necessary to curb Beijing’s unfair trading practices and intellectual property theft. The United States trade representative reiterated those claims Tuesday on the heels of the WTO’s decision.
“This panel report confirms what the Trump administration has been saying for four years: The WTO is completely inadequate to stop China’s harmful technology practices,” U.S. Trade Representative Ambassador Robert Lighthizer said in a statement. “The United States must be allowed to defend itself against unfair trade practices, and the Trump Administration will not let China use the WTO to take advantage of American workers, businesses, farmers, and ranchers.”
All told, Washington has 60 days to appeal the decision under WTO rules. The move could trigger Beijing to ask the organization to adjudicate which, could last over a period of several years.
Nearly a year ago, in an address to the United Nations General Assembly in New York, President Donald Trump argued that the Geneva-based WTO needs “drastic change” to counter cheating from China and other nations.
“For years these abuses were tolerated, ignored or even encouraged,” Trump said in September 2019. He also said that the United States will not accept a “bad deal” in trade talks with China and that he did not need a deal before the 2020 election.
“Hopefully we can reach an agreement that will be beneficial for both countries. But as I have made very clear I will not accept a bad deal for the American people,” Trump said, prompting no reaction from the Chinese delegation watching.
Author: Amanda Macias