Barron’s Big Money Poll: U.S. Stocks Could Rise 15 Percent By Mid 2021; Also Their Favorite Sectors To Invest In Over Next 12 Months — And, One’s To Avoid
The titel above comes from Nicholas Jasinski’s article in this weekend’s/April 27,2020 in Barron’s. Mr. Jasinski notes that Barron’s recently surveyed 107 money managers took a Barron’s Big Money Poll last week, “sharing their forecasts for the markets, the economy, and even the political scene.” I will try and capture the key takeaways; but, for Mr. Jasinski’s tull article, I refer you to this weekend’s Barron’s.
“Not surprising,” Mr. Jasinski notes, “most Big Money managers are anxious about the near-term, given rising unemployment, falling economic output, gyrating share prices, and the ongoing toll of a novel, and as yet – incurable disease. But, they are largely upbeat for the outlook for 2021, when they expect America to be back to work, and the economy to resume growing.”
When asked which equity market will outperform in the next 12 months, 62 percent of those surveyed picked the S&P 500, while 16 percent picked Emerging Markets, 14 percent picked the China (Shanghai) Composit,e, with Europe (Europe Stoxx 600) garnering 5 percent of the vote, and Japan’s Nikkei 225 got just 3 percent of the vote.
When asked which S&P 500 sector is most attractive now: 39 percent surveyed said technology;consumer staples, financials, and health cares each garnered 11 percent. The most unattractive sectors: Not suprisingly, energy was the most disliked sector, garnering 32 percent of the vote; followed by real estate with 19 percent of the vote; consumer discretionary at 14 percent; jutilities at 11 percent; and financials at 9 percent.
When asked to name their favorite stocks: These five companies got the most votes: Amazon, Berkshire Hathaway, Chevron, JP Morgan Chase, and Microsoft.
“Nearly 50 percent of the Big Money respondents gave POTUS Trump an A or a B for his handling of the current financial crisis; and 56 percent expect him to be re-elected as POTUS this November,” Mr. Jasinski wrote. “Eighty-nine percent of respondents expect Republicans to maintain control of the Senate; and, 75 percent say Democrats will maintain control of the House of Representatives.”
On a personal level, I like technology and the bio-pharma sectors for investing over the next 12 months. Again, for the full article, I refer you to this weekend’s Barron’s. RCP, fortunascorner.com