These & # 39; terrain & # 39; stocks are important to investors when the world comes without color

Markets continue to hang on every word of Beijing-U.S. The trade development, with a report the US and China have agreed to cancel the tariffs on each other in phases that set up a bullish Thursday for stocks.

The truth is that no one even wants to entertain the idea that a big deal will never be done, which can trigger a global recession and bring the beef market to its knees. With that in mind, it's worth checking today's ring from CEO and Investment Investment Officer Vitaliy Katsenelson, who has said that investors need a "terrain" portfolio now more than ever.

In a speech with the financial media group Real Vision, Katsenelson expressed some major concerns about the road ahead for investors ̵[ads1]1; a "huge" China bubble, a weak global macro picture and high valuations for US stocks dating back to the crash years of 1999 and 1929 .

“How do you construct a portfolio for it? You basically want to own companies as if things hit the fan, "he said. That is, high quality companies with "significant competitive advantage, high repetition of revenue, very little debt" and whose business is not related to the health of the economy.

For example, Katsenelson said the portfolio has a lot of exposure to health-care stocks due to growing demand for the services of those companies, which offer predictable cash flows, price strength and solid balance sheets. As a value investor – someone who looks for assets that seem underpriced – he said the health care system fits the bill right now.

The final safe harbor property, gold, is not in that terrain portfolio, but he said they & # 39; warms up to it as they try to figure out the best way to invest. "We're in the world where you have negative interest rates, so suddenly gold doesn't sound like crazy anymore," Katsenelson said. More about his "terrain" portfolio in this podcast.

Just in case you slept through that toll heading and stock futures, our map moves from The Daily Shot brings that moment to life:

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