Why Finance is my Favorite Safe-Haven Tariff Sector

Editor’s Note: Drop whatever you’re doing on Wednesday, March 26 at 2 p.m. ET and sign up for our “TARIFF EMERGENCY LIVE BRIEFING.”

This urgent event outlines five “EXTREME BUY” stocks at levels we may never see again.

Your money is too important to risk tariff news bleeding away your wealth, so join us Wednesday.

Click here to sign up now.

– Ryan Fitzwater, Publisher


Yesterday my colleague Karim Rahemtulla mentioned the Steel sector as one of his top tariff-proof plays.

And today I’m revealing my top safe-haven sector.

That sector is finance.

Here’s why I believe the finance sector is primed for a major bounce back.

My case for finance

Unlike manufacturing or consumer goods, financial institutions do not depend on physical goods that are subject to tariffs.

Many financial services get their revenue from domestic markets such as lending, wealth management and insurance.

Even large multinational banks have diversified income streams that are not overly dependent on global trade. These include profits from consumer loans, credit cards and capital markets.

Banks can also pivot their investments if tariffs start to hurt one sector.

For example, during the U.S.-China trade war between 2018 and early 2020, there was economic slowdown in both countries.

Yet, banks were able to offset risks through domestic lending and digital finance. These included loans to small businesses less affected by tariffs and boosting online engagement by increasing offerings.

While no sector is completely immune to trade wars, banks have the ability to pivot in ways other sectors don’t. They also have several income streams to offset any losses.

My No. 1 Finance Stock Play

There are several buy opportunities in the finance sector – but I have my eye on an especially enticing chart right now.

Top Finance Stock Gapping Down

As you’ll see above, this stock is currently gapping down, making it a prime “gift gap” trade candidate.

I’ll be revealing the exact company at the upcoming “TARIFF EMERGENCY BRIEFING” next week.

If you’re not familiar with “gift gap” trades, here’s how they work.

The strategy behind “Gift Gaps”

When it comes to finding a strong gift gap candidate, I look for stocks that have had a single-day, double-digit stock price move.

The move could be up…

Or it could be down…

But either way, the move creates a “gap” in the stock. And often times, it’s a big overreaction by traders on Wall Street.

My gift gap scanner monitors every one of these moves – and alerts me the instant that any of these candidates closes the double-digit gap by at least 10%.

When this happens – it’s GO time.

Based on 5 years worth of back-tested data with a 365 day max holding period, the stats show stocks in the “gift gap” sweet spot “fill” this overreaction at an alarmingly high rate.

For example…

  • +25% of that gap filled 97% of the time in just 23 days
  • +50% of that gap filled 92.79% of the time in just 44 days.
  • +75% of that gap filled 88.65% of the time in just 61 days.
  • And +100% of that gap filled 84.82% of the time in just 76 days.

That’s about as close to a guarantee as you can get.

And since this latest top financial stock just gap-filled down to $220, I’ll be looking to buy at a $60 discount and target around $300.

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YOUR ACTION PLAN

The finance sector is my top safe-haven sector amidst the current trade wars.

And to get my top finance pick next week, I invite you to sign for our “TARIFF EMERGENCY BRIEFING” on Wednesday at 2 p.m. EST.

Karim, Ryan and I will also be giving you 5 “EXTREME BUY” stocks we believe are at discounted levels we may never see again.

Don’t let your money bleed away during this current trade war. Your retirement is too important.

Click here to sign up for our free “TARIFF EMERGENCY BRIEFING” today.


FUN FACT FRIDAY

Rebound Records: While trade wars can negatively impact the markets in the short-term, history shows the S&P 500 has a strong track record of bouncing back from trade-related selloffs.

For example, during the U.S. trade war with China in 2018-2019, you’ll see the S&P 500 fully recovered and even hit all-time highs after China signed the “Phase One” trade deal in 2019.

S&P 500 and U.S.-China Trade War (2018-2019)

We’re getting our readers prepared during the tariff wars at our upcoming “TARIFF EMERGENCY BRIEFING” next week.

Here you’ll be given all our best strategies and also receive our 5 “EXTREME BUY” stocks that are at buying levels we might never see again.

Click here to sign up today.


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