With the recent Wall Street massacre, CNBC Pro is asking strategists and investors what’s next for stocks and where they see pockets of opportunity in the coming weeks. U.S. stocks briefly fell on a bear market on Friday as the broad S&P 500 fell 20.9 percent from its highest high in January at one point in intraday trading before closing slightly higher. Nevertheless, the index reported its seventh consecutive week of losses, its longest downward series since March 2001, as investors continued to be hit by recessionary fears, inflationary fears and expectations of an aggressive interest rate cycle. But some market participants believe that there are still opportunities for investors to buy the decline selectively. “The recent downgrade of stocks due to higher real interest rates could provide investors with a reasonable entry point, given how stretched equity estimates have been over the past two years,” Marcela Chow, a global market strategist, told CNBC. in JPMorgan Asset Management. She believes that the information technology sector could provide opportunities for long-term investors, given the sector’s moderate assessments and long-term growth prospects. “The IT sector needs to see strong profit growth, given the global demand for software products and services, as well as the continuing demand for hardware,” Chow added. Todd Jablonski, chief investment officer for the distribution of major global assets at Principal Global Investors, said it was not time to “run to the hills” despite the challenging background. The company manages more than $ 700 billion as of March 31. “The shares have proven their resilience and it is surprising for many investors how sustainable the shares of external forces can be,” Jablonski said. Despite cheaper estimates of equity, he warned that “returns will be hampered” without the wind of easy financial conditions and positive profit growth. Jablonski said he preferred US stocks, given their relative resilience to the Russia-Ukraine conflict and a major economic power. It is important to stay invested Thomas Pulauek, Head of Multiple Asset Solutions for Asia and the Pacific at T. Rowe Price, believes that the investor’s unique investment goals and horizons will determine their approach to stock markets. “For long-term investors such as those planning to retire, our study will show that it is important to stay invested in the long run. Although there are periods of instability like this on the road, establishing the right distribution of assets and diversifying their investments can help mitigate the impact of volatility on their portfolio, “Pulawek said. 13 of the last 94 years until 2021. “While one-year returns can vary dramatically, investors should keep in mind that stocks have never lost ground, double-digit or otherwise, in any period of 15 calendar years since 1928. .”, he said. “Therefore, the long-term investor can feel more confident by holding stocks, even if he experiences short-term declines,” Pulawek added. The asset manager highlighted selective opportunities that he said were “worthy of investors’ attention”. His fund has increased its exposure to Asia, the former Japan, to modest overweight due to the prominence of the reopening thesis in the region, where inflation is also “less worrying” than other regions, according to Pulauek. Australia is another “attractive market” due to its growing earnings forecasts and “solid domestic demand”, he added. Read more Here are the ETFs that are working this brutal year Strategists are revealing how they trade technology stocks – and the same names keep popping up. Similarly, Michael Purves, founder and CEO of Tallbacken Capital Advisors, believes that while Microsoft and Alphabet-like ones are being revalued amid rising interest rates, these stocks have “amazing” financials and cash balances to boost growth. of profits through stock repurchase. Parves said he saw many “tactical rebounds” in stocks that had been “really broken” in the past few weeks. That includes high-quality, low-capitalized reserves, he said. Purves also prefers stocks of energy and materials such as hedging against rising inflation.
The Wall Street symbol is listed on the New York Stock Exchange (NYSE) in New York on March 9, 2020.
Carlo Allegri Reuters
With the recent Wall Street massacre, CNBC Pro is asking strategists and investors what’s next for stocks and where they see pockets of opportunity in the coming weeks.
Add Comment