Investors hoping for a quick resolution to the latest turn in the trade war better buckle up. A quick scan of news headlines across the net reveals a bull market in words like escalation, retaliation and currency war. Today we’ll offer three safe stocks to buy for traders wondering where to hide and where to escape the turmoil.
You don’t have to be an expert in U.S.-Chinese relations to realize recent developments mean pain for investors. All it takes is one look at stocks this morning. The sea of red reveals all you need to know about how investors feel regarding the battle moving into the currency markets.
In case you missed it, the Chinese yuan fell to its lowest level in over a decade. The move is viewed as China’s retaliation to last week’s latest round of tariff increases announced by President Trump.
Here are three strong trending stocks that should hold firm amid the tumult.
Nothing says safety like chocolate bars. Hershey (NYSE:HSY) has already had a banner year. Its year-to-date gains jumped to 44% after last month’s earnings release. Since then, we’ve seen HSY stock form a high base pattern showing little giveback or desire by shareholders to take profits. That also means it held firm in the face of the Federal Reserve meeting and the initial tariff news.
This morning’s behavior is perhaps the most telling. With the broad market down north of 1.50%, HSY is unchanged. Safe stock? You better believe it. I’m sure the 2% dividend yield doesn’t hurt either.
The consistency of its trend has also been telling. Its 20-day, 50-day and 200-day moving averages have trended higher all-year long and show the domination of buyers across all time frames.
A break below $139 would warrant reassessment, but until then, consider HSY one of the top safe stocks to buy.
Procter & Gamble (PG)
Procter & Gamble (NYSE:PG) hasn’t kept up with the pace of HSY, but the consistency of its uptrend has been admirable. Last week’s earnings announcement launched PG stock to a new record, pushing its year-to-date gains to 32%. The retracement we’ve since seen has been orderly and is returning PG to its breakout zone.
Traders unwilling to chase the earnings gap now have a lower-risk entry point. On the cash flow front, Proctor & Gamble offers a yield of 2.8%. Its beefy payout has helped boost demand due to falling interest rates elsewhere.
As long as PG remains above $110, it’s game on for bullish plays.
Starbucks (NASDAQ:SBUX) rounds out today’s trio of safe stocks to buy with a robust uptrend of its own. It has been a market-leading and market-beating stock all year long. Last month’s earnings beat and stock pop placed an exclamation point on its dominance.
SBUX stock has been weighed down slightly by market weakness in recent days, but the drop appears nothing more than a garden-variety pullback on its chart. We haven’t even filled the earnings gap yet. Couple that with the rising 20-day moving average looming closely and SBUX looks like one of the best buy-the-dip candidates on the board.
A break below $89 would cause me to re-assess, but until then, this is a safe stock to buy.
As of this writing, Tyler Craig didn’t hold a position in any of the aforementioned securities. Check out his recently released Bear Market Survival Guide to learn how to defend your portfolio against market volatility.