Two respected traders recently shared their picks for four tariff-proof stocks that offer investors shelter from the seemingly endless China-U.S. trade storm.
Mark Tepper, president and CEO of Strategic Wealth Partners, recently told CNBC that domestically focused companies with a consumer lean should do well, such as Darden Restaurants (DRI).
"Darden owns restaurants like Olive Garden, Longhorn and Capital Grille, and since wage growth has been accelerating, the consumer has more money so they are more likely to go out for dinner," Tepper recently told CNBC.
Tepper also suggested Waste Management (WM), a company that derives the bulk of its revenue from the U.S.
"They're in a consolidating industry which really gives them a huge advantage because their national presence and huge landfill base really allows them to operate more efficiently than the other players," Tepper said.
Meanwhile, Instinet's chief market technician, Frank Cappelleri, likes American Tower (AMT), a wireless infrastructure company housed within the real estate sector, as his tariff-proof pick.
"The stock has quietly been making new highs over the last few weeks and I think that's significant because if you look back, it really has been moving sideways for the better part of last year after failing at that $150 mark back in November," Cappelleri said. "Along the way it continues to make new highs over the last three years or so."
Cappelleri also likes health-care leader UnitedHealth (UNH) for its protection from trade, CNBC explained.
"It's been making new highs or close to making new highs right in this uptrend for the last three years which is something really not many S&P 500 stocks can claim right now," he said.
Each time UnitedHealth's stock has pulled back within its uptrend over the past three years, it has proven to be a buying opportunity, said Cappelleri.
For his part, Trump said on Thursday said there was “a long way to go” on tariffs with China and urged companies to build products in the United States to avoid them, Reuters explained.
Trump, who planned to meet with Chinese President Xi Jinping on Saturday on the sidelines of the G-20 summit in Argentina, said in a Twitter post that tariffs on China were bringing money into the United States and “there is a long way to go.”
"Billions of Dollars are pouring into the coffers of the U.S.A. because of the Tariffs being charged to China, and there is a long way to go. If companies don’t want to pay Tariffs, build in the U.S.A. Otherwise, lets just make our Country richer than ever before!" he said in the tweet.