The Tell: Here are the stocks to buy if an all-out U.S.-China trade-war erupts, says Goldman

As uncertainty over the outcome of Sino-American trade talks grows, so does the possibility of longer-than-expected negotiations or an all-out trade war.

The Trump administration has laid the groundwork to unexpectedly increase duties on $200 billion in Chinese imports to 25% from 10% at 12:01 a.m. Eastern Time on Friday. That escalation has prompted strategists at Goldman Sachs to offer some timely trading strategies, if trade negotiations, set to kick off on Thursday, break down.

See: ‘China has chosen to retreat’ — the U.S. view as negotiations reach critical juncture

The investment bank’s analysts, led by chief equity strategist David Kostin, are recommending that investors target services firms, which they describe as less exposed to trade policy (including retaliatory moves) and have better corporate fundamentals, as a group that could help to insulate investors from tariff-fueled volatility.

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