But for investors worried that the trade war will worsen, Goldman had two recommendations: Buy shares of companies that earn most of their revenue in the US. Goldman's domestic-sales basket has outperformed the S&P 500 by 130 basis points since May. It includes Charter Communications, Target, CVS, and Wells Fargo, none of which have any non-US sales. Overwrite equities with S&P 500 calls expiring in December 2019, with a strike price of 2,900. These will outperform if the index rises by less than 9%, Kostin said.
GOLDMAN: How Trump's trade war affects stocks and what to invest in - Business Insider
A rapid rise in the dollar has hurt second-quarter financial results and some U.S. companies are warning that the pressure could persist in future quarters. The U.S. dollar has risen 2.5 percent so far this year .DXY against a basket major currencies with most of its gains coming in the second quarter. As a result companies are starting to reevaluate their currency hedging strategies. Here are some of the U.S. companies blaming the stronger greenback for weaker revenue or profits:
Factbox: Strong U.S. dollar hurts U.S. firms across multiple industries | Reuters