Where to invest if the trade war escalates

The drama surrounding the trade talks has enabled a number of analysts to determine in the last few days in which companies to invest, if the trade war could further escalate.

Some analysts fully advise on positioning in defensive shares, but others have found companies that will even be completely immune to the effect of a commercial battle.

Atkore International, a company that stands out in RBC's analysis that it will not suffer any defeat from the conflict. The company manufactures elements for electrical engineering, and last Tuesday announced better-than-expected results. The company has a minimal exposure to China and is not directly exposed to the effect of tariffs. The shares of the company are up 11% for the last month.

Power and utilities such as American Electric and Entergy are performing exceptionally well, even in times of commercial tension. UBS analysts strongly recommend them. According to Daniel Ford, the best stocks in the utilities sector will be those of fully regulated companies. Although the shares of the listed companies are down slightly, they are up 20% in the past year.

Aqua Venture Holdings is another buyer in times of commercial uncertainty. They create water purification systems, and their reports are also stronger than expected.

The company practice has zero exposure to China and will be fully resistant to possible escalation and new tariffs. Here are the other recommendations from analysts:

• Citi recommends Avery Dennison & Crown Holdings
• SunTrust with recommendation for Mohawk Industries
• Jefferies with a hold-up rating for Brunswick

Source: CNBC

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