The U.S. stock market is experiencing extreme volatility following President Donald Trump’s aggressive tariff policies, which include a baseline 10% tariff on all imports and significantly higher rates on countries with trade imbalances, such as China (up to 50%). While these tariffs have triggered inflation concerns and disrupted global trade, certain companies are positioned to thrive in this environment due to their domestic focus, essential services, or ability to benefit from reshoring efforts.
Below is a comprehensive report on the top 10 stocks to consider in this turbulent market.
1. T-Mobile (TMUS)
Sector: Telecommunications
T-Mobile stands out as one of the largest wireless providers in the United States with continuously expanding market share. The company primarily focuses on wireless phone services and home internet access, making it significantly less susceptible to the direct effects of tariffs. Telecommunications services represent essential expenses that consumers are unlikely to eliminate, even during economic downturns. With minimal international exposure and strong domestic revenue streams, T-Mobile offers stability in the volatile tariff environment.
Why It’s a Buy:
T-Mobile's focus on domestic wireless services and home internet positions it as a resilient player in the tariff-driven economy. Telecommunications are essential expenses for consumers, making the company less vulnerable to economic downturns or trade disruptions. Additionally, its strong free cash flow and leadership in 5G network expansion provide stability and growth potential.
Risks: Heavy infrastructure spending could strain margins, especially if economic conditions worsen.
Our Trade Idea (I'm not going to put these in our Member Portfolios but I will track this post over time):
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- Sell 5 TMUS 2027 $200 puts for $16 ($8,000)
- Buy 7 TMUS 2027 $200 calls for $77 ($53,900)
- Sell 5 TMUS 2027 $250 calls for $48 ($24,000)
- Sell 3 TMUS Sept $260 calls for $20.50 ($6,150)
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That's net $15,750 on the $35,000 spread that's 100% in the money to start and, if all goes well, we'll have 6 more sales that will generate another $18,000 as time goes by.
