Buy these 6 types of stocks next as Big Tech falters and inflation falls, says Swiss bank UBS.

U.S. stocks are set for a mixed day ahead, following a tumultuous Thursday that saw technology companies help the Nasdaq eke out gains while the Dow and S&P 500 fell.Our call of the day, from chief investment officer Mark Haefele’s team at UBS UBS, -1.85% Global Wealth Management, urges investors to look at six types of stocks.

One is to diversify technology holdings away from mega-caps in the U.S. and Asia like Apple AAPL, +1.26%, Amazon AMZN, +2.17%, Alphabet GOOGL, +0.80% GOOG, +0.54%, Facebook FB, +1.64%, Alibaba BABA, +1.09%, and Tencent 700, +0.67%. UBS sees “limited near-term catalysts” for these stocks. Instead, Haefele’s group identified opportunities in digital leaders in Europe; small and midsize firms exposed to trends like 5G, fintech, greentech, and healthtech; and digital subscription businesses.

Investors should also favour U.S. small- and midcap stocks—that is, companies with a market capitalization below $10 billion but above $300 million. “On a price-to-earnings basis, U.S. small- and mid-cap valuations are near 20-year lows relative to large caps, despite the likelihood that earnings growth for smaller companies will outpace large-cap earnings through at least 2022,” Haefele’s team said.

A record $756 billion in cash flowed into the U.S. Federal Reserve’s overnight “reverse repo” facility on Thursday, after a blockbuster sale of securities to money market funds and the country’s largest banks. In reverse repo operations, the Fed sells securities for cash and agrees to buy them back for a higher price at a later date—temporarily reducing the quantity of reserve balances across the banking system.

WallStreet 'advisers' and mass media: CNBC, Bloomberg have to be very proud for luring clueless retail 'investors' into the biggest StockMarket BUBBLE in history! This is what they are paid for by big corporations - turning retail investors into bagholders!

good

Canada Canada Latest News, Canada Canada Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Market-Beating China Fund Manager Favors Scooters and Spicy Sauce Over TechMichelle Leung's Xingtai Capital avoids companies that have yet to turn a profit and doesn't hold stocks in Chinese internet giants, including Alibaba and Tencent good luck
Source: WSJ - 🏆 98. / 63 Read more »

Tech Industry’s Glory Days in Washington Are OverPresident Biden’s decision to name a progressive antitrust crusader to lead the Federal Trade Commission made one thing clear: There is to be no sequel to the tech industry’s glory days during Obama’s years in the White House We gave them a chance during the Obama years and they blew it.
Source: WSJ - 🏆 98. / 63 Read more »