Dear Readers, If you've been confused by all the recent turmoil in markets, you're hardly alone. With every passing day comes a new twist or turn in the global trade war. Newly announced tariffs are swiftly met with retaliatory measures, which then beget more teeth-gnashing and further retaliation. On the flip side, reports that the US and China have simply spoken on the phone are often enough to send risk assets soaring. Traders are desperate for signs of progress, and have been highly reactionary to news of further escalation. It's created an unstable environment and reaffirmed the need for investors to enter each trading day with a firm plan in place. That's where the Investing team at Business Insider comes in: For starters, we interviewed Katie Nixon — the chief investment officer of Northern Trust Wealth Management, where she oversees $294 billion — to see how she's advising clients to play the trade war. She shared three options that either offer low risk, or have the potential to climb as interest rates fall. They range from infrastructure assets to high-yield bonds. Then there's the hedge fund team at Goldman Sachs, which says large money managers are playing with fire by continuing to buy the same stocks that are already proven winners. The strategists offer a trade recommendation they say can insulate everyday traders from large losses during the next downturn. We also spoke to Randy Frederick, the trading chief at $3.3 trillion Charles Schwab, who says investors should refrain from trusting their gut when it comes to navigating the trade war. He instead implores people to "trade small" when the going gets tough in order to eliminate large potential downside. And then there's JPMorgan quant guru Marko Kolanovic, a man whose research has moved markets in the past. He's not buying recent trade war headlines as the primary driver of recent stock-market weakness. He instead argues that there are technical forces in play, and that investors should position bullishly going forward. Going beyond trade war madness, here's a rundown of our other main coverage from the last week, which featured specific 7-year forecasts for a wide range of assets, some psychologically driven investing advice, and an ominous look at Federal Reserve policy. A $60 billion investing firm unveils 7-year forecasts for a wide range of assets — and explains why emerging markets are a trader's best bet It's easy to get caught up in the day in, day out market gyrations. But if you have the patience to establish a seven-year view in your portfolio, these asset class forecasts from Grantham, Mayo, & van Otterloo could be your ace in the hole. Spoiler alert: the firm loves emerging markets. READ MORE HERE >> Denise Shull made a name for herself training Wall Street's top investors to perform better through psychoanalysis and neuroscience. Here are her top tips for traders. Shull, performance coach and renowned author of "Market Mind Games: A Radical Psychology of Investing, Trading and Risk," explains how emotions and feelings undermine sound decision-making in financial markets.
She also offers strategies for investors looking to mitigate these emotions and feelings in the presence of market volatility and uncertainty. READ MORE HERE >> An equity chief explains why an unexpected Fed decision could soon burst 'the biggest bubble ever' and send bank stocks skyrocketing BTIG chief US equity strategist Julian Emanuel says the ongoing bond rally could be "the greatest bubble ever." He also thinks the Federal Reserve now has a timely opportunity to help deflate this bubble, albeit in an unexpected fashion. If that does happen, he strongly recommends bank stocks. READ MORE HERE >> Other good stories from the investing realm: One market expert says flashing recession signals mean 3 years of negative returns for stocks — but he has a strategy that could still make investors a killing A millennial wealth manager at a $500 million firm breaks down the advice he gives clients either looking to have a kid or buy a home Recession fears from Trump's trade war have all but ensured the Fed will cut rates further. Here are the 12 stocks Goldman Sachs says could benefit most. A hedge fund manager who retired at 36 explains how a 'doom loop' in corporate credit is on the verge of upending the pension system Bernstein warns that retirees' returns from 401(k) plans could be on borrowed time. Here's how that could make inequality worse and alter the entire investing business. A millennial who manages $450 million for the ultrarich explains why her generation feels uncomfortable in the financial system — and outlines how they can invest with confidence |