After a record run of the S&P 500, UBS says look here for the next stock winners


A red flag of the Federal Reserve is a bit troubling to investors, in a week that has given milestones for the stock.
Global stock slipped after the Fed released the minutes of its latest policy meeting on Wednesday. “In summary, the minutes described a weak economy at an uncertain level with few viable policy options at this juncture,” said Jonstreading chief market strategist Michael O’Rourke.

In particular, rattling investors believed that the Fed appeared to take an option – yield curve control – off the table. Under that policy, the central bank would commit to buying bonds if a specific yield was violated. The idea that the Fed would continue to buy large assets could help reduce stock prices, so there seems to be some disappointment this morning.
Or maybe that record runs for the S&P 500 SPX,
-0.44%
And the Nasdaq Composite Comp,
-0.57%
Motivated some people to withdraw cash from the table. Our Phone of the day A team of strategists led by UBS Global Wealth Management Chief Investment Officer Mark Heffel says there is no fear of a 51% rally for the S&P 500 since COVID-low in March.

“We see the equity rally mainly driven through new quantitative easing and ultraviolet rates to add unprecedented liquidity to the market with new liquidity at the central level,” says Haefel, who calls the central banks “the future of the future. Incentive mode “- subsidiaries for shares and other perceived risky assets. But investors will need to think where to invest.
He expects “the most attractive returns in the next phase of recovery will be those segments of the market that have lagged so far.” This means that investors risk exposure to equities, which has recently been driving big gains like the big American technology names – Facebook FB.
+ 0.09%,
Apple AAPL,
+ 0.12%,
Amazon AMZN,
-1.57%,
Microsoft MSFT,
-0.60%,
Netflix nflx,
-1.49%
And Google’s original alphabet GOOGL,
-0.71%
– May wish to “counterbalance” in other occasions.
“We see the reverse especially for companies involved in 5G and other enabling technologies. Furthermore, as the global recovery slowly takes hold, the next phase in the market may be driven by cheaper sectors that have lagged behind in rebounds, such as cyclical and price stocks, “Haefel tells customers in a note is.
And he sees US Midcap shares as “ready and broad to gain lost ground as economic recovery gains traction.” Smaller companies perform better in recovery because they are more cyclical.
Looking at the measurement of midcap share performance, the SPDR S&P 500 ETF Trust SPY,
-0.41%
SPDR S&P Midcap-400 ETF Trust is up 4.7% year on year against a 6% decline for MDY,
-0.41%.

As ETF.com points out, the midcap stocks led the market recovery after the 1997 Asian financial crisis, the 2000 dot-com bubble, and the 2008–09 financial crisis.

market

Dow YM00,
-0.28%,
S&P ES00,
-0.26%
And Nasdaq NQ00,
-0.04%
Futures are under pressure, with losses to European SXXP,
-0.88%
And the Asian market. Gold GC00,
-1.23%
Slipping and Dollar DXY,
+ 0.03%
Is up.

Chart

Time for Loving Europe Shares?

The buzz

Weekly jobless claims are ahead and economists are looking for another decline. The Philadelphia Federal Reserve Manufacturing Index and key economic indicators are also coming.
China’s e-commerce giant Alibaba shares
Saint,
+ 0.53%
Slipping after the result.
Intel INTC shares,
-0.65%
The chips are climbing after the manufacturer announced plans for a huge stock buyback. Rival Nvidia’s shares are also slipping after record revenue.
A few months ago the unfit, home-rental company Airbnb is planning an initial public offering.
Makeup giant Estée Lauder EL,
-0.37%
Will post up to 2,000 after posting a loss.
A Chinese official says recently suspended trade talks are coming back.
Sen. Kamala Harris officially accepted the Democratic Party’s nomination for Vice President at its virtual convention, where former President Barack Obama gave the slogan to the current administration.

Random reads

Russian opposition leader Alexey Navalny is in coma After drinking suspected poison tea.
Germany is breaking up on lazy Dog owner.
Central banks are here to make you happy.
mission accomplished.
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