One of the most anticipated events on the stock market will be the start of the rate cut cycle in the United States that could happen this month. This situation is, logically, framed in the market’s doubts regarding the progress of the country’s economy.
Thus, the main indices of Wall Street has had several days of volatility. That is why, in this context, experts recommend In which sectors to invest from the local stock market through Argentine Certificates of Deposit (Cedears).
From Capital Market Argentina (CMA)assured that, in the face of the instability generated by the possibility of a possible recession or a “hard landing” due to the increase in the unemployment data in the US in July, various equity market indices corrected sharply.
“Although they have already recovered from that fall, This scenario makes us think about different options in which we can invest in the face of this uncertainty due to the possibility of a sharp drop in economic activity in the United States.”they expanded from CMA.
As noted in this report, it will be key to invest in companies in the health sectorwhich is an area that has companies that are “low volatility” because they have “not so high betas” and they are usually companies with solid fundamentals. In this regard, they chose: United Health Group (UNH), Johnson & Johnson (JNJ), Pfizer (PFE) and Eli Lilly and Company (LLY).
Artificial Intelligence: Is there still an opportunity to enter?
“It’s about an economic context that shows auspicious signsand underpin the optimistic climate, Beyond doubts about the possibility of a recession on the horizon“, he explained Favio E. Castroof Asset Management Criteria. For this reason, ALyC has a long-term vision contemplating an increase in productivity in the US economy, similar to that experienced in the second half of the 1990s.
Contrary to what might be expected in a context of high interest rates, The so-called “Magnificent Seven” have spending on “capex” (i.e. “real investment”) at record levelsexperts warn.
“Beyond the weakness in the traditional mechanism of monetary policy transmission in a context of higher interest rates by the Fed, The impact on firms’ investment decisions was considerably lower than expected. This was undoubtedly due to the intense interest of companies in investing in artificial intelligence technologies.“, Castro added.
For Criteria’s expert, Microsoft and Apple presented clear investment opportunities in recent years and their success was based on the fact that investors recognized the “value” behind it, when the market underestimated its future cash flows.
“An investor does not need to constantly search for new exotic ideas as if buying a lottery ticket. Having A boring Cedears investment portfolio in a country with a very entertaining economy is usually a great long-term idea.“, Castro concluded.
Two portfolio alternatives: “high dividends” and “low beta”
From PPIThere are several ideas for building a portfolio, but one of them is aimed at companies that pay dividends. Within this group you can find: Exxon, Chevron, Barrick Gold, Bank Of America, Coca-Cola, Johnson & Johnson, Procter & Gamble, Verizon, JP Morgan and Dow.
Regarding the portfolio “low beta”which includes stocks with a beta value less than 1, meaning that the stock is less volatile than the market and therefore less risky, This portfolio includes: Unitedhealth Group, Merc, Bristol-Myers, Johnson & Johnson, Abbvie, Hershey, Pepsico, Cardinal Health, Rtx and Colgate-Palmolive.
Source: Ambito
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