These 3 kinds of stocks will be ripe for the picking in the second half of 2020, UBS says - Business Insider

Equities are now pricing in a U-shaped recovery through the second half of 2020, but only a few corners of the market offer the best value, the bank said. Firms boasting global diversification are more appealing than ever, UBS added, as a worldwide economic rebound stands to pull multiple sectors higher with it.

Vicious sell-offs through March were "broad-based and occasionally indiscriminate," opening up fresh opportunity in high-quality companies, the team led by Mark Haefele said. The communication services and tech sectors both feature "still-solid fundamentals" after sharp declines, while European stocks with exposure to developing economies could ride a wave of central bank aid, according to UBS.

Companies with relative resilience to coronavirus-induced shutdowns are also well-positioned for a recovery. Certain consumer staples, healthcare, and communication services businesses "should display resilient earnings growth" amid the pandemic and may even see increased use, the team wrote. UBS's last category of interest includes equities set to enjoy an acceleration of new, long-term trends in the wake of the virus outbreak. An almost-immediate uptick in quarantine activity and working from home will likely drive "wider adoption of technologies like video conferencing, virtual learning, and telemedicine," UBS said.

Stocks aren't the only investment yielding fresh opportunity amid the early market recovery. For investors looking to add risk amid heightened volatility, corporate credit has emerged as "the best near-term risk-reward profile," the team said. The sector has recently been propped up by Federal Reserve purchases, and spreads on both high-yield bonds and dollar-denominated emerging market bonds "are pricing in too much bad news, in our view," they added.

The only thing you have to do is remain long usd vs euro . Road to parity soon.

Singapore Singapore Latest News, Singapore Singapore Headlines

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

Meet Zoom billionaire Eric Yuan, who's made $4 billion in 2020 so far - Business InsiderMeet Eric Yuan, the founder and CEO of Zoom, who has made nearly $4 billion in 3 months as usage of his video conferencing software skyrockets amid the coronavirus pandemic Not surprised … we have been using it almost daily! With the current global health crisis, hopefully, we see a fix real fast on Zoom's privacy and security issues. We need true end-to-end encrypted services, Iot network that will secure and power our future. The Future of Privacy iotex_io OwnYourPrivacy maralsd эдний хувьцаа гараад олигтой яваагүй анхны үнээсээ унаад л бсн, тэвчээртэй барьж бсн нөхдүүд л хожлоо доо, одоо зараад салдаг цаг
Source: BusinessInsider - 🏆 729. / 51 Read more »

2 ways Huawei could overtake competitors after addressing setbacks in 2020 - Business InsiderHuawei plans to address setbacks in 2020, and increased R&D spending and concentrated market share in China could see it fare better than competitors. __maelchristian
Source: BusinessInsider - 🏆 729. / 51 Read more »

Subscriptions Could Insulate the Music Market in 2020Music sales plummeted last week as brick-and-mortar retailers encountered mandatory closure orders -- but subscriptions could keep streaming services, artists and labels afloat.
Source: billboard - 🏆 112. / 63 Read more »