Donald Trump's potential tariffs on China are causing the market to be very fearful about what could be coming next.
But, as the saying goes, it could be time to be greedy with the stock market showing red across the board.
If I had $10,000 to invest today, this is what I'd do with it:
National Veterinary Care Ltd (ASX: NVL) – $3,000
National Veterinary Care is down by 3.98% today. What does tariffs on China have to do with people taking their pet to the vet in Australia? I'm not sure either. This fast-growing vet business is rapidly using funds to buy more vet clinics to add to its network. I think it is one of the best small caps on the ASX at the moment.
Challenger Ltd (ASX: CGF) – $3,000
Challenger is down 1.92% today. Declines in capital markets do have an effect on Challenger, but it shouldn't affect the demand for annuities. In-fact, it could increase demand because retirees want a secure source of income for their capital, they don't want volatility. I think Challenger is the best finance stock on the ASX, which is why it's one of my biggest holdings.
Magellan Global Trust (ASX: MGG) – $4,000
The Magellan Global Trust is down 1.97%. There are few managers on the ASX that have done better over the past 10 years than Magellan Financial Group Ltd (ASX: MFG). This trust is heavily exposed to the biggest US businesses and some of its largest investments include Apple and Alphabet. I think it will do well out of this volatility because it keeps a good percentage of its portfolio as cash for protection and opportunities.
Foolish takeaway
I believe all three of these shares will comfortably beat the market over the next two to three years. At the current prices it's hard to pick one as a clear winner because they all look good value to me, I'd really like to add more of each share to my portfolio.
