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How to Invest During a Volatile Stock Market

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  • (0:40) - Volatility Spikes Again: What Is Exactly Happening?
  • (4:00) - How Does The Trade War Impact The Manufactures and Consumers
  • (12:45) - Should Investors Be Buying Stock Dips Or Investing In Gold?
  • (17:05) - Is The China Trade War Creating Investing Opportunities?      
  • (23:50) - Episode Roundup: BTG, RGLD, PINS, TWTR, AMZN, FB
  •                 Podcast@Zacks.com

Welcome to Episode #188 of the Zacks Market Edge Podcast.

Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.

This week she’s joined by Zacks Chief Equity Strategist, John Blank, to talk about the stock market volatility, including the impact of a possible trade war with China, the slowdown in US manufacturing and where the global economy is heading.

Where Should Stock Investors Be Looking?

Is there anywhere to hide out in this uncertainty?

Some industries, like the industrial manufacturers, are going to be impacted directly by the tariffs.

But others, like the social media giants, who are already banned from doing business in China anyway, probably will not.

Gold has hit 6-year highs as investors have flooded into the yellow metal seeking security. Suddenly, it’s one of the hottest industries.

Should investors be buying gold? 

Gold and the Social Media Stocks

1.       Pinterest (PINS - Free Report) gets most of its revenue from North America so its exposure to China is low. It’s earnings picture is improving with earnings expected to jump 97% in 2020. Pinterest is a Zacks Rank #2 (Buy) stock.

2.       Twitter is global but it’s mostly banned in China which has it’s own Twitter-like service called Weibo.  It’s one of the cheaper social media stocks as it has a forward P/E of just 17 and a PEG of 0.7.

3.       Facebook has large operations in India, but not in China where it has been banned. Tencent is often called the “Facebook of China” because it offers a very similar portal. Shares are down nearly 10% in the last month’s volatility. It now has a forward P/E of just 29.

4.       B2Gold (BTG - Free Report) is a gold miner which is expected to grow earnings by 12.5% in 2019 and another 54% in 2020. Shares are up 15% over the last month. But has the gold rally been priced in?

5.       Royal Gold (RGLD - Free Report) is not a miner but it acquires and manages precious metal stream and royalty interests from 40 revenue producing properties. Shares are up 14% in the last month. It also pays a dividend, currently yielding 0.9%.

What else should you know about investing in this volatile market?

Find out on this week’s podcast episode.

[In full disclosure, the author of this article owns shares of FB in her personal portfolio.]

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