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BlackRock says the economic recovery is actually a powerful restart underestimated by the markets.
Pent-up demand, the uniqueness of the 2020 shock, and inflation dynamics characterize the restart.
With this in mind, they are bullish on US stocks, real assets, and emerging market equities.
After about one year of living under unprecedented economic uncertainty induced by the pandemic, it seems like we are starting to see a light at the end of the tunnel as we approach a more familiar lifestyle while Covid cases fall.
This isn t the first time economies have had to heal themselves from the damages wrought by recessions. So far in the 21st century, the US has exited two crises that triggered fear and volatility within markets, including the early 2000s
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Michael Oh, manager of the Matthews Asia Innovators Fund, shared 3 firms he likes over 5-10 years.
Oh also broke down for Insider the 4 pillars of his investing strategy.
He highlighted some of the structural trends that will fuel growth in Asia going forward.
Benchmark indexes tracking Asian markets are inefficient, according to Michael Oh. With their allocations to big banks and industrials firms, the indices look backwards and don t generate the returns a future-focused strategy can, the manager of the Matthews Asia Innovators Fund told Insider on Monday.
Value stocks have gained steam in recent months as an economic recovery sits in sight.
Rob Arnott says value stocks in the UK and emerging markets are the most attractive.
The founder of Research Affiliates called them potentially the trades of the decade.
In 2019 and 2020, the COVID-19 pandemic sunk stock prices around the world as the global economy shut down.
Anticipatory and brave investors seized opportunities in cyclical and cheaper value stocks as recessions and bear markets briefly took hold.
These became consensus trades, however, since multiple effective vaccines were discovered at the end of last year, sending stocks especially economically-sensitive ones soaring. Read research from just about any market strategist at the major banks, and you ll find they re all bullish on the recovery trade.
For almost a decade, the US market has outperformed both developed and emerging-market equities.
If Biden reenters trade agreements like TPP, foreign stocks can outperform US stocks this year.
Commodity exporters and Asian importers are primed to benefit the most, John Traynor says.
Traders work on the main trading floor of the New York Stock Exchange March 21, 2007. Brendan McDermid/Reuters
International equities could do better than their US peers if Joe Biden is successful in reengaging the US with the rest of the world from a trading standpoint, according to People s United Advisors CIO John Traynor. Over the past several years, clients were questioning why they had global allocation to their portfolio, and we believe that those questions will be laid to rest this year, he said.
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