The best investing stories of July: How to win the next phase of COVID-19 — 'hidden' high-upside businesses — record-cheap value stocks
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.
Dear Readers,
At this point the dust has pretty much settled on the winners of the stock market's post-COVID rally.
If you were heavily invested in tech giants like Apple and Microsoft, you made out with hefty gains. Same goes for consumer discretionary, which saw an upper echelon headlined by Amazon and restaurant chains like Domino's Pizza and Chipotle surge off Feb. 19 lows.
On the flipside, if you were stuck in energy or financials, you likely had a very rough time. But fortunately for those caught on the wrong side of the market's recent rally, experts across Wall Street seem to think change is afoot.
Many of them are preparing for the next phase of life in the stock market — one characterized by stimulus uncertainty and a US economic recovery that's lagging the rest of the world. To that end, Business Insider has been gathering information to help you tackle the new environment.
If you aren't yet a subscriber to Investing Insider, you can sign up here.
We spoke to James Callinan, whose fund is dominating the broader market this year. He said he's already looking past scorching-hot "work-from-home" stocks to "real companies" built for long-term success. He outlined his outlook, and detailed 6 stock picks. Read the full story here.
Meanwhile, Bank of America's Michael Hartnett says historically strong performance from "all-weather portfolios" built to thrive during market stress is on its last legs. He offered 3 trades to prepare in advance — and perhaps even capitalize. Read the full story here.
And then there's Jefferies, which is tweaking its core stock-investing strategy to reflect a slower-than-expected US economic recovery. The firm made two major shifts, which it says will help traders outperform in the medium term. Read the full story here.
Thanks for reading!
-- Joe
A peek at a highly exclusive 'buy' list, plus an IPO to watch
Clients of Jim Osman, the founder of the Edge Group, pay a minimum of $1,000 a month for his research. And they're heavy hitters: The roster of 200-plus has roughly $400 billion under management.
Osman details how arrives at his stock picks based on a few select characteristics — and breaks down two companies he likes right now.
Read the full story here:
200-plus money managers pay thousands to set eyes on Jim Osman's stock buy list. Here are 2 he says are set to soar — and an under-the-radar IPO to keep a watch on
A guide to finding companies with 'hidden' high-upside businesses
Jason Tauber manages the Disrupters portfolio for famed investment firm Neuberger Berman. The portfolio more than doubled its benchmark, the Russell 1000 Growth Index, in the first half of 2020.
In an exclusive interview, Tauber broke down how he finds high-upside businesses within companies that aren't being valued properly by the broader market. He also discussed how's he's tweaked his winning approach to picking tech stocks.
Read the full story here:
Portfolio manager Jason Tauber is outstripping the market's returns in 2020. He says these 3 high-growth companies have 'hidden assets' that could make them far more valuable than most investors believe.
Jason Tauber is crushing the market this year by finding the tech companies enabling the biggest disruptions. He told us how he's adjusting his game plan as valuations soar — and 7 of his top picks today.
Overlooked stocks trading at a record bargain
Stocks that are considered undervalued are trading at a record cheapness compared to the rest of the market, says Marko Kolanovic, JPMorgan's global head of macro quantitative and derivatives research.
He foresees a so-called squeeze higher for value stocks, and recommends that investors position their portfolios to profit from a rotation away from popular growth names.
Read the full story here:
JPMORGAN: The most unloved group of stocks at the coronavirus crisis peak is now more appealing than ever before. Here are 3 trades to buy into while they're still super-cheap.
Stock pick central
Seeking experts who are willing to name names? Look no further:
- Bernstein says buy these 13 dividend-rich stocks built to capitalize on a trend not seen in 65 years
- These 16 global stocks have at least 20% upside in the next year — and they'll continue to thrive as COVID-19 accelerates a crucial technological shift, UBS says
- GOLDMAN SACHS: These 17 trades can help investors maximize their gains from the stocks most affected by the US elections in November
- Jefferies is telling investors to buy these 13 cheap, under-the-radar stocks in order to bet on an economic recovery
- Buy these 19 cheap healthcare stocks poised to beat the market regardless of election outcome and the fate of Obamacare, BTIG says
- A market-research expert breaks down the 3 sectors and 4 stocks that he says are best to own as a new Cold War between the US and China heats up
- GOLDMAN SACHS: Buy these 26 stocks now to crush the market as an 'overvalued' dollar continues to weaken in the months ahead
- RBC lays out 6 trades to make now ahead of a possible Democratic sweep in the elections — and says waiting until November is the wrong move
Chart of the week
The JPMorgan chart above — compiled by the firm's quant guru, Marko Kolanovic — shows that value stocks are now trading at a record cheapness relative to growth.
Kolanovic's takeaway from this trend is that value stocks are susceptible to a squeeze higher, and investors should rightly position their portfolios ahead of time.
Click here for more details
Quote of the week
"An inflection in COVID-19 trends in the US South, repricing of election risks, positive vaccine news, additional US fiscal stimulus round, and/or better than expected Q2 earnings results/guidance could provide a catalyst for a squeeze on Value names."
— Marko Kolanovic, global head of macro quantitative and derivatives research at JPMorgan, on why he sees a value-stock rally in the cards