The recent market volatility triggered by President Trump’s sweeping tariffs has investors on edge.
Stocks To Watch | 📊Ready, set, trade! Keep an eye on these stocks as they set the market abuzz #StockMarket #TrumpTarrifs pic.twitter.com/efHPbCOdlo
— ET NOW (@ETNOWlive) April 7, 2025
The tariffs, which start at a baseline of 10% and go up from there for countries like China, Vietnam, and those in the European Union, were much higher than Wall Street anticipated. The effective U.S. tariff rate on China now stands at a staggering 54% when combined with existing rates.
Stocks tumbled on Thursday as investors reacted to the elevated tariff policy.
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— ET NOW (@ETNOWlive) April 5, 2025
The uncertainty and fear have already dragged stocks into the red this year, and experts believe things aren’t likely to improve soon. Kate Moore, chief investment officer at Citi Wealth, advised against adding risk right now, stating, “The uncertainty factor is just starting.”
It is still very early to draw conclusions for what's ahead in markets from activity in futures.
Having said that, the initial partial indicators are unsettling:
US stock futures are down another 3-4%, 10-year yields are 10 bps lower, and oil is down another 3%.
In other words,…— Mohamed A. El-Erian (@elerianm) April 6, 2025
In this nervous climate, defensive stocks that can hedge against rising uncertainty from the mounting global trade war may be the best bet for investors.
“The stock market is not the economy”
<measures economic success based on short-term stock market moves>
— Nate Geraci (@NateGeraci) April 7, 2025
A selection of stocks was screened based on criteria such as stability relative to the overall market, steady income stream, high U.S. revenue exposure, low leverage, and expected earnings growth in 2025.
Investor caution amid market turbulence
One key pick is General Dynamics, an aerospace and defense stock that has added more than 3% in 2025.
Wall Street has been bullish on the defense sector since Trump’s second term, citing tailwinds like increased defense spending in Europe and plans for a “Golden Dome” missile defense system over the U.S. Citigroup analyst Jason Gursky believes General Dynamics could rally to $335, implying a 21% upside. Principal Financial Group, an insurance stock, has climbed 5% this year and could rise another 7% according to JPMorgan analyst Jimmy Bhullar. He upgraded the stock to an overweight rating, citing the company’s lower-risk business mix, better outlook for operating trends, and attractive valuation.
Vici Properties, a real estate investment trust focused on the casino industry, has advanced 9% this year and yields 5.4%. Barclays analyst Richard Hightower initiated coverage with an overweight rating, pointing to the quality and economic productivity of Vici’s assets as deserving a higher valuation premium compared to its peers. As trade tensions rise and market volatility persists, these stable stocks present strategic defensive plays for investors.
They combine stability with growth potential, offering reliable options in an uncertain economic environment.
