News that U.S. President-elect Trump plans to impose additional tariffs on imports from China, Canada and Mexico caused an uproar in global markets on Tuesday. Asian markets were broadly lower, but Chinese stocks surprisingly outperformed. Hong Kong’s Hang Seng Index closed slightly higher, while mainland China’s blue-chip CSI 300 Index closed down just 0.21%. Peter Boockvar, chief investment officer of U.S.-based Bleakley Financial Group, said China was better prepared to deal with tariffs than in 2016. problem because U.S. exports are a much smaller percentage of China’s total exports than they were six years ago,” he told CNBC’s “Street Signs Asia” on Tuesday. Value investors, by contrast, believe U.S. companies will be hit hard. Referring to the impact of the tariffs imposed by the Trump administration in 2016, Boockvar said overall they were “a negative, not a benefit.” “What I see is a tariff war that sends U.S. manufacturing into recession. While some industries like steel and aluminum may be protected to some extent, all users of steel and aluminum are affected and their costs go up. ,” he said. “We’re down the same road again, somehow expecting a different outcome,” Boockvar said amid a backdrop of tariffs for U.S. small and mid-cap stocks and a world where prices, interest rates are likely to rise and the U.S. dollar is strengthening. , who is looking for the “cheaper parts” of the U.S. market, including small and mid-cap stocks, commodities, energy and fertilizer stocks. He added that small and mid-cap stocks are “the most attractive segment of the U.S. market” because they offer good value, unlike large-cap stocks such as Nvidia and Microsoft, which “have not traded as well since their second-quarter earnings.” Good. “The market has finally discovered that there are more than just seven stocks to watch, and I think that explains the recent outperformance of small and mid-cap stocks,” Boockvar explained. The Russell 2000 index of U.S. small-cap stocks has gained nearly 22% since the start of the year, not far behind the S&P 500’s 25% return. Stocks he’s following include natural gas producer EQT and agriculture companies Nutrien and Mosaic. In addition to the United States, Asian markets including China, Japan, Singapore and Vietnam also offer “a lot of value,” Boockvar said. Stocks he focuses on include casino and resort company Las Vegas Sands, which operates the Marina Bay Sands hotel and casino in Singapore, and Melco Crown Entertainment Ltd., which owns multiple casinos and gaming facilities in Asia and Europe ). Boockvar also likes insurer AIA Group, which trades as American depositary receipts on the Hong Kong Stock Exchange under the ticker AAGIY.
As Trump tariffs loom, value investors reveal what to buy | Real Time Headlines
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