The stock market has continued to suffer headwinds to remain in the headlines and disappointing metrics in a confrontation with the warm-up economy on Wall Street.
Read:Jim Cramer urges investors not to fool new heights in the stock market
And while it may feel sad and uncertain, Thomas Hayes, founder and president of Great Hill Capital, may have a new phase in the bull market on the way.
In other words, developments on which leaders like Apple AAPL can be weighed on key indices,
, Amazon amzn,
, Facebook fb,
And other big-name tech players, will actually provide tailwinds for beat-down names designed to rebound.
“So, ‘what do you think about the market?” No less interesting than a question, ‘What do you think about banks, commodities, emerging markets, defense stocks, technology, etc.?’ ‘Henny said.
He used this chart to describe how much relative appetite for Tech has been recently:
Some of the names he mentions may return to the world of an epidemic: Bank of America BAC,
, JP Morgan Chase JPM,
, Apache apa,
, Murphy Oil Moore,
, Boeing BA,
, Lockheed Martin LMT,
, Mgm mgm,
, Las vegas sands lvs,
, Southwest Airlines LUV,
And United Airlines UAL,
, With compelling set-ups to name just a few.
“Vaccine announcement, or major breakthrough that indicates near certainty and time period on vaccine / treatment … will shift consensus from slower recovery / growth (lower rates) – which benefits technology – faster. Recovery / growth (slightly higher rate) – which benefits cyclists, “he explained in his post.” When these groups turn, it will happen suddenly. ”
In particular, banks should see a big move, he said.
“Most people are trading at a discount to book – in many cases – to buy now versus chasing banks, to book at a 50-100% premium,” Hayes said. “How do we know? Because it comes out of every single historical recession. There is no recovery going out of the gate without banks / cyclicals (early / high growth stages). No debt growth, no recovery.”
Overall, the one that remains exclusively with the aforementioned lagards remains stationary.
“The catalyst will probably come from science at this point. Don’t bet against science, “he said. “I won’t be able to see a little volatility / bite in the next few weeks. For now, keep dancing while playing music, but keep your feet on the ground. ”
For now, the stock market is rather quiet, with the Dow Jones Industrial Average DJIA,
Technical heavy Nasdaq Composite
And the S&P 500 SPX,
Thursday’s trading session all hovering around the downturn.