Stock market investing strategy: Why cyclical firms could rally - Business Insider

simply click here to claim your deal and get access to all exclusive Business Insider PRIME content.

While Paulsen is taking an optimistic view of banks, industrials, and materials companies, he thinks the consumer discretionary sector doesn't look as attractive.Every day, experts tells investors to buy stocks that look great but have escaped the public's notice. Less common is when those experts say to buy some stocks because, on the surface, they look bad.

"What is the best time to buy a stock that's really sensitive to the economy? It would be when you're in the pit of a recession and you're just about ready to exit," he told Business Insider in an exclusive interview. "They have been washed out on a relative basis," he says. "The fact that they have underperformed for as long as they have and by as much they have, that's one factor that makes them look attractive right now."

And that's a good sign because a similar pattern of stability, rather than a V-shaped recovery, played out after the Global Financial Crisis, the slowdown in 2011, and the oil price plunge in 2015-16.Paulsen continues that pessimism around the health of the economy is affecting the stocks to the point that a recession is more or less priced in. That means there's a lot of room for things to turn out better than investors expect.

"Policy officials are working really hard to improve the relative performance of your cyclical stocks by dropping the longterm cost of capital almost in half over the last year... by exploding the money supplies, by increasing fiscal juice over the last year, and kind of keeping the dollar flattish as opposed to continuing to go up," he said.

Belgique Dernières Nouvelles, Belgique Actualités

Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.

Uber stock tanks 6% after the ride-hailing firm lost its London operating license - Business InsiderUber stock tanks 6% after the ride-hailing firm lost its London operating license 'Uber co-founder Travis Kalanick unloads nearly $1.5B in company shares.' Good. Their horrible.
La source: BusinessInsider - 🏆 729. / 51 Lire la suite »

Tom Alberg explains why he took a chance on Jeff Bezos and Amazon - Business InsiderHere's why early investor Tom Alberg took a chance on Amazon even though Jeff Bezos wasn't 'the smartest guy I'd ever met' and everybody thought it'd be 'murdered' by Barnes & Noble
La source: BusinessInsider - 🏆 729. / 51 Lire la suite »

Why Lyft passengers give 4.97 average rating for self-driving rides - Business InsiderLyft has received enthusiastic feedback from the 75,000 rides it has given in Las Vegas using self-driving cars that run on Aptiv's technology. 4th reason - free ride if you give 5-star review!
La source: BusinessInsider - 🏆 729. / 51 Lire la suite »

Your three-stock survival kit for 2020 — packed by Nuveen’s top stock-market strategistOur call of the day from Nuveen’s equity strategists says investors need to brace for a coming year that won’t top the 20%-plus gains we’ve been seeing. The... You don’t need any stocks! It’s the end of the business cycle and politicians, corrupt governments, and central banks need to monetize this insurmountable debt. What does this mean? QE4. Buy physical gold and silver! The way the democrats scare people everyone won’t be buying anything once again in an election year! College is going to be free, Green New Deal, free income, Free Healthcare & more taxes that is just going to be less spending including job hiring but they don’t care just power! BUY BITCOIN!!!💪🏻💪🏻💪🏻💪🏻💪🏻
La source: MarketWatch - 🏆 3. / 97 Lire la suite »

Why the bullish stock-market narrative depends on U.S.-China trade rhetoric right nowIf it feels like the stock market is blipping up or down based on the latest trade headlines, that’s because it is, according to an analysis by Société... wow that's crazy that the economy drove people's attitudes towards stocks. thank you for this valuable insight. Now add 4) us -china conflict over HK after bill passed
La source: MarketWatch - 🏆 3. / 97 Lire la suite »