The Iran war first sent stock markets crashing, then diplomacy hopes sent several indexes to new record highs.
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With so much volatility in the market, where do investing experts recommend putting your money?
Tanker Shipping Companies
“Shipping rates are soaring due to transit uncertainty, longer routes are required, and ships are spending extra days at sea all of which is excellent news for these companies,” said trading expert Vince Stanzione, author of “The Millionaire Dropout.”
He recommended the SonicShares Global Shipping ETF (BOAT). While it covers all types of shipping (not just tankers), its largest holding is Frontline (FRO). BOAT is up over 26% this year and currently pays a dividend yield over 6%.
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Magnificent 7 Stocks
Phil DeAngelo with Focused Wealth Management sees fresh value in the Magnificent 7 — Apple (AAPL), Microsoft (MSFT), Alphabet (GOOGL), Amazon (AMZN), Meta Platforms (META), Tesla (TSLA) and Nvidia (NVDA).
“I’m advising my clients to invest in Mag 7 stocks because I think we will return to a growth environment sooner than people think. The Iran conflict and AI concerns have made Mag 7 stocks cheap relative to book, especially following strong earnings reports showing double-digit year-over-year revenue growth,” he said. “We’re in the midst of an incredibly strong earnings cycle, so I think you need to take the long view with companies that have repeatedly proven that they know how to deploy capital.”
US Treasurys
Inflation worries sent U.S. Treasury yields soaring in the first month of the Iran war. More conservative investors can take advantage of those higher yields while they last.
Cody Schuiteboer, CEO of Best Interest Financial, pointed out that Treasury bonds also benefit when investors seek safety in the U.S. dollar. “During geopolitical crises, U.S. Treasurys typically gain 4% to 8% due to global capital flow into U.S. dollar-denominated assets,” he said.
Gold
Higher interest rates helped drive gold prices down, as gold generates no revenue while Treasurys offer an alternative “safe haven.” But with gold more affordable, the yellow metal looks more attractive to offset remaining uncertainty.
“For centuries, gold has served as a crisis hedge,” Schuiteboer said. “Gold helps protect investors from the unpredictable, including inflation.”
Fixed Index Annuities
Retirees and workers approaching retirement can protect against losses while still participating in stock market gains through fixed index annuities.
“Annuity companies use stock markets as a measuring stick to determine how much interest you earn,” explained Jarad Stolz of Diversified Insurance Brokers. “You earn some gains like being in the market, but you can’t lose your principal.”
Talk to a financial advisor before making any hasty decisions with your money, but these options all stand poised to either hedge against risk or produce outsize returns over the next 12 months.
Editor’s note: This article is for informational purposes only and does not constitute financial advice. Investing involves risk, including the possible loss of principal. Always consider your individual circumstances and consult with a qualified financial advisor before making investment decisions.
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This article originally appeared on GOBankingRates.com: I Asked Investing Experts Where To Put My Money During the Iran War: Here’s What They Said
