Straehl: Trade threats are infusing new volatility into the markets

Watch on YouTube ↗  |  January 20, 2026 at 12:24  |  3:04  |  CNBC
Speakers
Philip Straehl — Chief Investment Officer for the Americas, Morningstar Wealth

Summary

Philip Straehl, CIO for the Americas at Morningstar Wealth, discusses how escalating US-Europe trade tensions over Greenland are reintroducing volatility and uncertainty into markets. He notes rising long-term bond yields are baking in more risk premium, with investors seeking diversification. He favors quality stocks and wide-moat companies trading at discounts, citing healthcare, parts of consumer defensive, and industrials as potential areas.

  • US-Europe trade tensions over Greenland have reignited market volatility.
  • VIX rose from about 15 to 20, reflecting increased uncertainty.
  • Long-term bond yields have risen, baking in a higher risk premium.
  • Straehl says markets will adjust based on tariff news flow from Davos.
  • He favors quality stocks after a strong three-year run for risk assets.
  • He highlights healthcare, consumer defensive, and industrials as areas to watch.
Ideas
Philip Straehl Chief Investment Officer for the Americas, Morningstar Wealth 2:53
Quality stocks attractive after strong risk-asset run
Straehl favors quality stocks and wide-moat companies at this point in the cycle, arguing that after risk assets' strong run (S&P 500 up 23% annualized over three years), quality can be attractive and may be less impacted by trade-related volatility. He points to healthcare, parts of consumer defensive, and industrials as areas where discounted quality opportunities may be found.
QUAL MED
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This CNBC video, published January 20, 2026, features Philip Straehl discussing QUAL. 1 trade idea extracted by AI with direction and confidence scoring.

Speakers: Philip Straehl  · Tickers: QUAL