RBC Turns to Utilities as Defense Against Trade Uncertainty

The video discusses the potential decline of the SNP index and suggests investing in utility stocks as a defensive strategy amid trade tensions with Mexico and China. It highlights the orderly nature of recent market volatility and the cautious approach of investors. The challenges faced by small-cap companies due to tariffs and margin pressures are also examined, emphasizing the difficulty these companies have in managing incremental costs.

What sector is recommended for investment as a defensive strategy amidst trade tensions?

• Utility stocks

• Financial stocks

• Technology stocks

• Healthcare stocks

How has the market volatility been described in recent times?

• Chaotic and unpredictable

• Stable and unchanging

• Orderly and controlled

• Rapid and volatile

What approach are investors taking in response to market risks?

• Overreacting to short-term changes

• Ignoring market trends

• Panic selling

• Gradually reducing risks

What is a significant challenge for small-cap companies in the current market?

• High competition

• Tariff and margin pressures

• Overvaluation

• Lack of innovation

Why are small-cap companies considered cheap at this point in time?

• Because of positive market catalysts

• Owing to trade issues and economic threats

• Due to high growth potential

• As a result of strong financial performance