Trade War Update: What's New (and Next) for the U.S. and China

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We've rounded up the latest news on the U.S. and China's tariff tiff, to see whether the threat of new duties could help both sides forge a deal. Also, this week we'll teach you how to find great CEOs using the four C's, and we've got three stocks that could keep your portfolio strong if the market heads south.
— Nathan Alderman, your brand new Stock Up editor (hello!)

The Trade War: Recapping August's Major Developments


If your portfolio seemed a little seasick last month, blame the ongoing trade war between the U.S. and China. First, China slapped new tariffs on U.S. goods. Next, the U.S. increased existing tariffs on Chinese imports, and added new ones on consumer goods. Then — faced with the prospect of a blue Christmas for the economy — the U.S. delayed some of those new salvos until after the bulk of the holiday shopping season. Finally, President Trump first tweeted a demand that U.S. companies "immediately start looking for an alternative to China," then seemed to accept China's olive branch, which could bring both sides back to the negotiating table.

We've rounded up our best insights into which companies might benefit most from a trade armistice — and how the market might react if this titanic trade tussle keeps raging on. (Spoiler alert: It won't be happy.)

While we're waiting to see whether these two trading powerhouses can work things out and let bygones be bygones, read the rest.


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How to Evaluate a CEO Using the 4 C's of Good Management

The Fool's Environmental, Social, and Governance investing team is out to prove that nice companies can and do finish first in the stock market. They search for well-run companies doing right by their customers, their employees, their investors, and the world around them. This technique isn't all sunshine and wishful thinking: At least one Harvard Business School professor has found that "firms with good performance on material sustainability issues significantly outperform firms with poor performance on these issues, suggesting that investments in sustainability issues are shareholder-value enhancing."

To find CEOs who meet these A+ standards, our team looks for four C's:

  1. Compassionate: Good CEOs genuinely care about the people and planet around them. They don't chase short-term gains for their own sake. These leaders know that they'll succeed more in the long run, and build lasting value. by doing right by all the people on whom their businesses depend.
  2. Candid: Good CEOs focus on the metrics that matter most when building real, long-term value. They're as honest about their failures and mistakes as they are about their successes. They give investors plenty of un-fudged numbers on which to judge their companies' performance. And their transparency and sincerity makes them trustworthy.
  3. Capable: Good CEOs don't just go through the motions - they truly understand how their businesses work, and how they can grow and profit by doing the right thing. They're unfazed by multitasking, and they can run their businesses efficiently, allocate capital effectively, and cultivate a culture that keeps employees happy, focused, and working hard to do the right thing.
  4. Committed: Good CEOs go the distance with their companies, rather than jumping ship for the next shiny new opportunity. They own healthy chunks of the businesses they run, so that their interests align with shareholders', and they're personally invested in their companies' missions. They're willing to make long-term investments to keep their companies, cultures, and competitive advantages healthy and strong.

To learn more about each of these considerably compelling CEO criteria, and see a real-world example of the four C's in action, read the rest.


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3 Stocks to Buy Ahead of the Next Market Crash

Like the Babadook, the shark in Jaws, or the IRS, the next serious stock market slump is out there, somewhere, just waiting for a chance to resurface and strike. Whether or not our recent economic rumblings (Hello, inverted yield curve! Long time, no see!) will result in a recession, you don't want to be caught off guard the next time Wall Street swoons. We consulted our analysts to find three stocks that can stand up to anything the market throws at them:

  • Booze is your best buddy. The market's "animal spirits" have nothing on actual spirits, which hold up well even — or especially — when the economy starts singing the blues. We've found a well-fortified purveyor of wine and hard liquor with a track record of staying on its feet even when the rest of Wall Street starts to stumble around. And if alcohol alone isn't enough to calm your nerves, this beer baron's branching out into the budding world of cannabis-based beverages.
  • This company is garbage. From getting wasted to getting waste, we've found a trash-loving enterprise that'll leave you anything but grouchy. We'll still be throwing out and recycling stuff no matter what the economy's doing, and this company's well-positioned to clean up by hauling away our dirt.
  • Retail therapy. This shopping superstar fears no recession, having bulked up its business to fend off online competitors and resist the slings and arrows of outrageous economic fortune. By expanding both on the Web and in good ol' physical reality, this robust retailer's ensuring that its aim remains true no matter which way the winds are blowing.

To learn more about all three of these solid selections, read the rest.


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