Advice for investing at record highs, including a 7-part stock-picking model
Advertisement
Joe Ciolli
Aug 26, 2020, 03:00 IST
Screenshot/YouTube
Hello everyone! Welcome to this weekly roundup of Investing stories from deputy editor Joe Ciolli. Please subscribe here to get this newsletter in your inbox every Tuesday.
Advertisement
Dear Readers,
The stock market is sitting at record highs. So why does it feel like the party's already dispersing?
JPMorgan has also joined in the lukewarm chorus, with strategist John Normand recently outlining what could trigger a bond-market sell-off that could threaten stocks. The implications of such a shift would bleed into everything from equities to gold — a situation that has Normand urging traders to hedge.
Also within JPMorgan is Eduardo Lecubarri — the firm's global head of small and mid-cap equity strategy — who predicts a rangebound stock market for the next year. But while his market-wide forecast is largely neutral, Lecubarri still sees select investing opportunities. He recently laid out 11 regions and sectors poised to outperform.
The Investing team at Business Insider is closely monitoring these shifting views to help you figure out how to excel in any market environment. See below for our best stories of the week, including a wide array of recommendations, strategies, and tips for navigating uncertainty.
After he grew frustrated with the advice and techniques being pitched through investment letters, O'Neil set out to develop his own strategy for spotting the market's next big winners. He famously turned $5,000 into $200,000 from just a handful of trades, according to Schwager.
Crossmark Global Investments' Victoria Fernandez shared with Business Insider five stocks she's recently added to her portfolio, as she sees them positioned to rebound alongside the economy. She also said she's trimming some big tech names as the economy begins to recover.
Joel Greenblatt — the managing principal and co-chief investment officer at Gotham Funds — proposes a wide range of solutions to systemic issues that have stymied growth and deepened the chasm between the haves and have-nots in the US.
Take control of your financial future and learn how to develop an investment strategy that works for you by attending "How to Be a Smarter Investor Now" on Tuesday, September 15 at 12 p.m. ET. The event is part of Business Insider's Master Your Money Live Digital Bootcamp series, presented by Fidelity.
The chart above shows the historical price reaction for a wide range of asset classes following a sharp sell-off in developed-market bonds. Those returns — and losses — dictate JPMorgan's strategy for how to play such an unexpected event.
"Forty percent of SMID caps are not pricing in much of anything. That's where the opportunity lies. The performance asymmetry that you've seen during this whole COVID-related downturn has been huge."
— Eduardo Lecubarri, the global head of small- and mid-cap equity strategy at JPMorgan Chase, discussing where to find returns in the stock market right now
{{}}
NewsletterSIMPLY PUT - where we join the dots to inform and inspire you. Sign up for a weekly brief collating many news items into one untangled thought delivered straight to your mailbox.