Stock markets finished lower Thursday as traders responded to a surprisingly hawkish turn by the world’s three major central banks over the past 24 hours. Today, the Dow Jones Industrial Average looks to open sharply lower as Trump’s trade war with China manifests a $100 billion round of tariffs on Chinese goods.
There’s a lot to digest.
The Federal Reserve raised interest rates again this week, penciling in four quarter-point hikes for 2018 and another three in 2019 while scrubbing much of the mealy-mouthed language from its policy statement about inflation being low and rates being low. The European Central Bank signaled it would end its bond-buying program by the end of the year. What’s more, the Bank of Japan aggressively tapered its own bond-buying stimulus program.
As banks around the world end the stimulus that propped up asset prices, and the U.S. awaits China’s response to the recent tariffs levied by the Trump administration, it’s a wise move to buy cheap stocks rather than load up on expensive stocks sensitive to harsh headlines.
But the dip is likely to prove a buying opportunity as economic fundamentals remain strong, the job market remains ultra-hot and earnings growth is solid. Here are six cheap stocks under $6 that are prime for a turnaround: