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Stay level and remember basic investment principles as the market enthusiastically cheers for a trade truce between the United States and China.
"I want to say selective, note that this trade policy uncertainty will continue for a while, so look for companies that are completely isolated from these pressures," Etoro Global Markets analyst Lale Akoner said in Yahoo Finance's opening podcast.
Prior to joining Etoro in January, Akoner spent more than 12 years in various financial management positions for asset managers such as BNY and Newton Investment Management.
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At least today, it may be difficult for investors to lean towards diversification.
The United States and China agreed on Monday to reduce the tariff war by 90 days in 90 days as each economy begins to feel pressure from damage fines.
After a high-level meeting in Switzerland over the weekend, the United States will reduce the "reciprocal" tax rate from goods from China from 125% to 10%. What President Trump said to him is China's role in the fentanyl trade, and the 20% tariff imposed will remain unchanged.
Read more: What Trump’s tariffs mean to the economy and your wallet
China will reduce its retaliatory tariffs on U.S. goods from 125% to 10%.
Market response soared.
The Dow Jones Industrial Average (^dji) fell to 42,309 points in early trading. NASDAQ composites (^i Toice) and S&P 500 (GSPC) were improved by 2.7% and 3.3%, respectively.
Some of the biggest gains are direct contact with the U.S.-China trade war companies, mainly from retailers from China: under five (five), Wayfair (W), Boot Barn (Boot), RH (RH), Newell Brands (NWL), Yeti (Yati (Yati) and Dick’s Sports Goods (DKS).
Despite the news, Acona said she continued to recommend investors to be selective now and have fewer stocks on stocks. The best options include Bank of America (BAC), JPMorgan Chase (JPM), Mastercard (MA), and Prudential (PRU).
Faced with the euphoric rally of the market, others on the street also took a measure.
"I have more questions than answers at the moment but it seems that: (1) more pragmatic voices in the US administration have taken control again; (2) the near-term economy is being prioritised over the long-term security agenda; (3) the US needs trade to continue for now, and perhaps overestimated the leverage high tariffs would give them in extracting conceptions," Deutsche Bank strategy Jim Reid said in a note.