#1. BUY US Dollars
With the markets in the US starting to come under pressure, it may be worth looking to the US Dollar as a safe-haven. The currency appears oversold in the near-term and may offer a shelter in the event of further market weakness. We also note that the ‘USD short’ is a particularly crowded trade at present, which has the ability to unwind if bid.
2. BUY Consumer Staples: Walmart & Pepsico
A sector we have been recommending to clients have been consumer staples, which are considered safe-havens in times of market uncertainty.
Pepsico has been holding close to it’s all-time highs, despite the market being under pressure.
We also like Walmart’s e-commerce as well as their digital transformation. This a $400bn market cap business with $560bn in annual sales. Technically, a break above the downward trend line triggers a swing long.