In a monthly investment call Tuesday, U.K. CIO Caroline Simmons said analysts had a particular preference for emerging markets in Asia and China in particular.
She also backed cyclical and value stocks — those whose performance will coincide with economic recovery or those with valuations lower than their financial position would justify.Fabrice Coffrini | AFP | Getty ImagesGlobal Wealth Management sees 5% to 10% upside for global stock markets, with emerging markets, financials, energy stocks and small caps best placed to capitalize.
In a monthly investment call Tuesday, U.K. CIO Caroline Simmons said analysts had a particular preference for emerging markets in Asia and China in particular. She also backed cyclical and value stocks — those whose performance will coincide with economic recovery or those with valuations lower than their financial position would justify.
This is based on expectations that the economic recovery will broaden out and accelerate over the course of the year, continuing to support a rotation from the high-flying growth sectors such as technology into sectors that benefit from an acceleration of industrial production and rising inflation. "Small caps tend to be more cyclical in terms of their sector makeup than larger caps, so they are more convergent to the economic recovery, and their valuations remain attractive," Simmons said on the call.is nearly two standard deviations below the long run average, so the small caps, despite having already performed quite strongly since November, remain attractively priced."
FED not extending SLR exemption means banks would have to buy more Treasuries to increase SLR from 1% to 5%. That would initiate the biggest Bond squeeze in history! The Bond's shorts would be forced to cover and sell their stock positions triggering StockMarket crash
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!