If Trump ignites a vicious trade war with China, as it looks like will happen with fresh tariff actions on Friday, you might want to unload that Skyworks Solutions (SWKS) stock you have been holding for five years.
Skyworks Solutions is in first place among S&P 500
UBS believes the mere prospect of a trade war with China could weigh on shares of many S&P 500 companies with out-sized exposure to China.
"With the IP investigation, we see rising risks of trade actions against China and given inherent difficulties of a tariff on IP, tariffs could be placed on select China imports, which total $500 billion," says UBS strategist Keith Parker. "Thus, headline risk could be notable, but implementation of any tariff would be challenging making a broad impact less likely -- across industries, imports from China are greatest for cell phones, tech hardware, apparel, semis and various consumer goods."
Interestingly -- and perhaps worryingly -- the market has chosen to ignore a trade war.