The fund manager says that if the tech rally is on its last legs, there are income-paying stocks to make up for it.


A difficult year ahead? Get ready.

Via AFP Getty Image

Stocks are set to clash on Thursday, with no good news on the COVID-19 front and vaccine optimism being used for everyone, but for now.

And that budding value trade – buying hard-hit companies that would benefit from better economic times – is also showing signs of investors as techs are coming back. Granted, price trading was tough for those powerful growth stocks for a decade.

It may be different this time, Tobias Levkovich, Citibank’s chief US equity strategist, told clients in a note. For example, he noted the weighted weight in the S&P 500 SPX,
+ 0.76%
(35% currently belongs to the technology sector) have never been permanent in the past. And investors may need to increase income from dividend-paying shares, which “inhabit the price camp,” he said.

The latter point is our exploitation Phone of the day From Ben Kirby, co-head of investment and portfolio manager of Thornburg Investment Income Builder Fund TIBIX, who said investors would need dividend-paying shares in a year when take-out returns could be lower.

Kirby’s penetration rate for tech companies is already high due to the epidemic. “In a recent interview, Kirby told Marketwatch,” because a lot of technology spending has intensified over the COVID period, and we think it’s driving that demand very much, which is two or three years into play Will take Therefore, there is less than 2021 ros for that region.

So is he placing bets for 2021? For starters, he is keen on international stocks, which he said often offer better dividends, such as European Telecom Orange Oran,
-0.50%
And Vodafone VOD,
+ 0.64%
Which provide high-scoring dividends.

JPMorgan JPM among US offerings in portfolio,
-1.49%,
Down about 17% year-on-year, but still offering a dividend, and Home Depot HD,
+ 0.79%,
There is a play on a “very strong” housing story that will last a long time, he said. And it has some tech stocks, but only where dividends are possible – Taiwan Semiconductor TSM,
+ 3.67%,
Broadcom AVGO,
+ 3.52%,
And Qualcomm QCOM,
+ 5.41%.

Read: What would a COVID-19 vaccine mean for mortgage rates and the housing market

Kirby said it also wouldn’t hurt investors to take some energy stocks. “Fifteen years ago it was the largest and now it is 2 or 3% of the market, so it is a small area that has become very well hated. The world has been using oil for a very long time in the context of a contradictory drama, ”he said. And those companies – they are the total owners of the fund,
-2.48%
– Definitely, pay dividends.

market

Stock futures ES00,
-0.37%

YM00,
-0.66%
NQ00 leaning south out of technology,
+ 0.16%,
Which are showing some teeth. European Equities SXXP,
-0.68%
Most are short. And the Nikkei 225 NIK led to a decline in Asian markets.
+ 0.67%.
Oil is stagnant, while the International Energy Agency cut its 2020 demand outlook higher than expected.

The buzz

Claims of consumer prices as well as weekly and continued employment are ahead.

Biotech Modern MRNA, said the first batch of data from late-stage testing of its COVID-19 vaccine is ready for analysis.
+ 8.40%.
New York has joined some states in the second wave of US implementing new restrictions for stem record infections and hospitalization rates.

Benefits for Chinese tech giant Tencent TME,
+ 2.40%
Jumped 89% in the third quarter.

Entertainment giant Disney DIS,
-3.01%
Will report after market closes (see preview), as well as Cisco CSCO,
+ 1.57%,
And analysts are not optimistic about the computer-networking equipment group’s results. Software and data group Palantir PLTR,
+ 14.00%
The first set of earnings since going public is also ahead.

Two days after technology giant Microsoft MSFT,
+ 2.62%
Released SNE of its latest Xbox, Sony,
+ 2.53%
The PlayStation 5 game console hits shelves on Thursday.

Federal Reserve Chairman Jerome Powell will appear on a panel on the European Central Bank platform on central banking at 11:45 am with top bankers such as Eurozone Central Bank President Christine LeGarde.

Chart

How are consumers feeling these days? Analysts at KeyBank Capital Markets surveyed 1,000 Americans between October 14 and 26. Here’s a question answered:

Random reads

President Nancy Pelosi? Here a lawyer says what can happen to the current Speaker of the House.

Here is another botched-art restoration trasti in Spain:

The need to know starts early and is updated until the opening bell, but sign up here to deliver it once in your email box. The emailed version will be sent around 7:30 pm Eastern.

.

Leave a Reply

Your email address will not be published.