Here is a possible sign of everything clean. COVID-19 is no longer a “tail risk” for investors, for the first time since February 2020, says Bank of America in its latest survey of fund managers. A tail risk is an unlikely event that could cause unusual losses or gains.
Scroll down to that graph.
In the meantime, the Federal Reserve’s two-day monetary policy meeting begins on Tuesday, and investors will be on the lookout for any violent signs that might take a little breath away from the shares. The pre-market is showing some mixed action, although many remain stuck with the idea of a post-pandemic boom, at least in the United States, as vaccines are being launched.
Reading: Valuable stocks are coming back. Don’t be left behind, say these analysts
That kept records for the Dow Jones Industrial Average DJIA,
and S&P 500 SPX,
and those actions aimed at a recovery. Our call of the day comes from Bank of America strategists, who offer up to 17 shares to buy for the three Rs they see coming – recovery, reflection and revaluation.
Strategists Jill Carey, Savita Subramanian and Ohsung Kwon say the economy has reached the middle of the cycle, where inflation is usually strongest. In such earlier phases, excluding the technology bubble, small businesses outperformed larger ones and value outweighed growth.
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The Bank of America team says there are two reasons to like these stocks: many of the companies they highlight are not yet expensive, and active funds are not positioning themselves for this rising inflation, with greater exposure to mega-caps than the smallest capitalization.
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About the shares (almost half are small to medium capitalization companies) …
Alcoa AA,
– BofA has a $ 37 share price target for the mining company. Aluminum prices can go anywhere, but the growth in global demand is an advantage for Alcoa.
Axalta Coating Systems AXTA,
– £ 37 share price for the global paint group. The pace of the car’s recovery will be critical and a stronger dollar and lower raw material costs could be a boost.
Broadcom AVGO,
– Target price of the $ 550 share. Risks for the semiconductor company include sensitivity to US-China trade relations and competition in networks, smartphones and other markets.
He is, She is,
– Target price of the $ 95 share. Among the risks of the energy company are oil and gas prices, as well as the slowdown in the development of drilling.
Marriott International MAR,
– $ 150 share price target. Economic weakness and worse-than-expected spending by companies and consumers are among the risks for the hospitality company.
Walt Disney DIS,
– $ 223 price target for the entertainment giant that has “best-in-class assets”. Downside risks include slowing ESPN’s growth due to people’s decision not to maintain a cable subscription, reduced consumer confidence and low frequency at theme parks. Also be on the lookout for potential film failures.
For the rest, they like CNH Industrial CNHI,
Comcast CMCSA,
Emerson Electric EMR,
Herc Holdings HRI,
Knight-Swift Transportation KNX,
Occidental Petroleum OXY,
Parker Hannifin PH,
Principal Financial PFG,
Robert Half International RHI,
Union Pacific UNP,
and World Fuel Services INT,
The graph
Here is the “tail risk” graph from BofA’s latest monthly survey of fund managers. The biggest risks are higher than expected inflation and a “tantrum” in the bond market.
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The markets
YM00 stock futures,
ES00,
NQ00,
are fluctuating a little bit, but European stocks are above the SXXP,
It was also a bullish day for Asian markets. Elsewhere, CL.1 oil,
and the DXY dollar,
are smoother and bitcoin BTCUSD,
is moving further away from the $ 60,000 weekend success.
The buzz
Retail sales and import prices are due before the market opens, followed by industrial production and an index from the National Association of Home Builders. In addition to kick-starting the Fed meeting, investors will also follow the outcome of a 20-year Treasury bond auction.
Ray Dalio, the founder of Bridgewater, the largest hedge fund firm in the world, claims to invest in securities as “stupid” and investors should stick to a “well-diversified portfolio”.
AstraZeneca AZN,
AZN,
the shares rose after Jefferies promoted the purchase of the pharmaceutical company. AstraZeneca is in the spotlight when several European countries suspend their injections of COVID-19 because of reports of blood clots from inoculations.
Finnish telecommunications group Nokia NOKIA,
NOK,
is cutting up to 10,000 jobs to save $ 716 million in two years.
A team from the U.S. government’s road safety agency is heading to Detroit to investigate a “violent” accident following a Tesla TSLA,
vehicle passed under a semi-trailer, leaving two people seriously injured.
Random readings
Office nostalgia – Redditers exchange stories from co-workers from hell.
When a hacker gets all your messages for $ 16.
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