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Your three-share survival kit for 2020 says this equity strategist



We have your market darkness for Wednesday.

Global stocks decline after fading optimism about trade deals, after Beijing warned of retaliation for Senate-backed human rights bill and President Donald Trump threatening China with more tariffs.

Undoubtedly, geopolitical tensions seem to follow us in 2020, amid concerns that the global economy may endure and, as the US election is waning.

In our call of the day Nuveen's head of equity, Cyra Malik, the capital's equity manager, says investors can strengthen their own portfolio protections a year ago by doing this one thing ̵

1; owning the right companies. [19659002] In presenting his forecasts to MarketWatch, Malik believes that the S&P 500 is expected to earn 5% profit

SPX, -0.06%

next year. It deletes a list of factors that it believes could weigh on returns – the current environment with low interest rates, geopolitical ups and downs, persistent fears about the longevity of the longest bull market in history, and the still too high profit estimates for the next year.

But even if the worst happens – a global recession that she doesn't think will continue anyway – stock selection will be key, leading us to her three-stock survival kit: Walmart

WMT, -0.30% ,

Merck

MRK, + 0.62%

and Coca-Cola

KO, + 0.09%

KO, + 0.09% .

These are quality companies that are less dependent on how the economy will develop, says Malik.

"These are companies that have survived and are already strong companies. Even if the stock price has a short to average dip, they will recover, "says Malik.

The Merck Healthcare Company, for example, has a strong dominance of products in its sector, while the Coca-Cola beverage manufacturer is “Moving beyond the soda company to a total beverage company.” The Walmart retailer, unlike the e-commerce giant Amazon

AMZN, + 0.01% ,

has a strong multi-channel offering, which means it sells products through physical stores and other means.

But Walmart will cost you less, she points out. Its price-to-earnings ratio – a popular measure of how much a stock is worth – is about 23 times. Compare this to 54 times for Amazon.

The Market

Dow

YM00, -0.31% ,

S&P

ES00, -0.30%

and Nasdaq

NQ00 futures, -0.42%

are under stress. Asian markets

ADOW, -0,79%

European stocks fell

SXXP, -0.57%

are headed for the worst decline in six weeks. The pound has been declining since

Tweets

The move to domestic trade darkness was this tweet by Hu Xi'in, the influential editor-in-chief of China's state-controlled Global Times.

The chart

Chips stocks had a powerful rally this year and Advanced Micro Devices (AMD)

AMD, + 3.54%

stresses this point after hitting a 13-year high on Tuesday.

MarketWatch

Michael Kramer, founder of Mott Capital Management, took the time to warn readers that AMD was reaching "extremely overbought levels" and could drop to $ 37.20.

Buzz

Shares of a Target retailer

TGT, -0.40%

rise on optimistic results while Lowe

LOW, -1.41%

reported a revenue leak and will close stores in Canada.

E-commerce retailer Alibaba

BABA, + 0.35%

has a share price for its Hong Kong debut at HK $ 176.

We will receive the minutes of the Federal Reserve meeting in October and possibly more information on this interest rate cut.

Statistics

23 million – that's the number of times the Australian bank Westpac

WBK, + 0.45%

WBC, -3.31%

                            
                                  
      
      
      
      
      
      
      
                                        Allegedly have violated money laundering laws, officials say. "We know we need to do better," said Brian Hartzer, chief executive of the bank.

Accidentally states

Amnesty International claims that protests in Iran have left more than 100 people dead.

Philippines will ban vaping after its first reported case of lung trauma.

Best line from UK general debate on elections last night? "I have my own Damson jam."

One producer apparently wanted Julia Roberts to play the role of Harriet Tubman.

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