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Ask the Expert: How to Use the Trade War to Make Money

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Stock market volatility in the U.S. has shot up in the past few weeks, as Trump has threatened to add 10% to 25% tariffs to existing tariffs on Chinese goods coming into the U.S.

In our Ask the Expert series, we asked the founder and chief investment officer of Kramer Capital Research how investors should use trade war-induced volatility to their advantage. Here's what she said:

"In order to guard against all the unknowns, especially the tariff trade war right now, what we are advising is that our clients at Kramer Capital do short-term trading off of this incredible volatility and opportunity to make money that we haven't been able to make before because volatility has been so low. But then over the long-term we say 'hey, get invested in these companies that you have wanted to own. Get that great dividend yield."

- Hillary Kramer

Kramer mentioned a few stocks that have dropped far enough since July 31, the day before Trump's added tariff threat, that their dividend yields are high and downsides are limited. 

  • Domtar (UFS) (paper manufacturing) -16.5% since July 31 (dividend: 5.14%)
  • Olin (OLN) -11.8% (dividend: 4.52%)
  • General Mills (GIS) (Recovered from drop, dividend: 3.63%
  • Boeing (BA) -1.17% (dividend: 2.44%)

"Companies like that are great ones to pick up and own in this environment," Kramer said.  

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