6 Tech Stocks to China-Proof Your Portfolio
The ongoing trade war between the U.S. and China is having an unmistakably negative effect on the technology sector. Numerous tech stocks have heavy Chinese exposure, whether it's via the rare-earth materials they use in their products, manufacturing done in China or just deriving a large percentage of revenues from the country. And their shares have been punished as the rift between the two countries has widened.
As a group, the outlook is worrisome. But a few tech stocks are more shielded than others from Chinese trade issues. Just look to the cloud.
Cloud computing has been a lucrative mega-trend on its own; whole industries have moved into scaled data centers, linked by fiber cable and wireless networks. But it also is shaping up to be something of a safe haven from trade concerns. China may make some of our devices, and their chips may go into our technology infrastructure, but the clouds themselves are ours, and so is the value inside them. Thus, many companies that operate cloud-based services look to be relatively well-insulated against this long-running U.S.-China trade spat.
The following are six tech stocks that can help China-proof your portfolio. Many of these stocks have run hot in 2019, and some of them are expensive
