Sunday, August 14

These are the values ​​that can do better on Wall Street

The market has taken the US employment data quite well, “on the one hand there is the fear of stagflation and on the other, the Fed has recognized that inflation is not transitory, so it will accelerate the withdrawal of stimuli” points out Rafael Damborenea, EUDE Business School, and to this is added the new variant of coronavirus. These are three risk factors that, even so, have not significantly affected the US indices. “We must highlight the strength that Wall Street is showing.”

Regarding sectors in which to look at this scenario, the expert points to strong industries and within this look for strong sectors and within, in turn, strong values. Right now, three industries stand out: technology, consumer discretionary and real estate. In technology, it highlights semiconductors, hardware and software. In consumer discretionary, we can look at the automotive or household products sector. And as for real estate, we must distinguish those that are doing better, such as industrial, office or residential. Hotels and lodging are showing more weakness due to travel restrictions.

The strong values ​​right now would be Home Depot, Apple, NVIDIA or HP. “It is good that we do our homework, that we look at the strength and we can combine momentum factor with quality factor, we will be on the good side of the market.

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