As the specter of a global trade war looms, U.S. investors might consider taking defensive measures. "Below the surface of the market, trade conflict would benefit the performance of most domestic-facing U.S. stocks relative to the most foreign-facing firms," according to a July 2017 note to clients from Peter Oppenheimer, chief global equity strategist at Goldman Sachs Group Inc. (GS), as quoted by CNBC.
Indeed, given President Trump's longstanding advocacy of protectionism, one of Goldman's ongoing investment themes since the 2016 election has been U.S. companies with sales that are largely, if not entirely, derived domestically. Below are seven stocks in Goldman's domestic sales basket that Oppenheimer recommends, per CNBC.
Protected From Protectionism
Of these seven companies, all derive 100% of their sales in the U.S., with the exception of Intuit, which is at 95%, per Goldman and CNBC. For these stocks, here are their price moves from the close on February 28 through the close on March 2, for year-to-date 2018, for full year 2017, plus their forward P/E ratios and dividend yields, per adjusted close data from Yahoo Finance:
- CSX Corp. (CSX)0
- CVS Health Corp. (CVS)
- Dollar General Corp. (DG)
- Intuit Inc. (INTU)
- Public Storage (PSA)
- Verizon Communications Inc. (VZ)
- Wells Fargo & Co. (WFC)
President Trump announced his plan to slap high tariffs on imported steel and aluminum on March 1. The S&P 500 Index (SPX) was down by 0.8% from the close on February 28 through the close on March 2. The index is up by 0.7% for the year-to-date, and advanced by 19.4% in 2017. The Investopedia Anxiety Index (IAI) indicates that our millions of readers worldwide are very concerned about the securities markets. (For more, see also: Trump May Kill Jobs With Tariffs, NAFTA Exit.)