Head of Equity Strategy
Summary: In this equity update we provide investors with inspiration for a 'bounce back basket' in equities. We are looking for high quality companies with low debt levels that have fallen a lot since 17 January 2020.
Equity markets are not one-ways streets although it has felt so the last two weeks. There will be bounce backs and at one point the policy response will be enough to hammer in a market low. When the time comes investors will have to be ready. In the short-term we don’t believe in an immediate market low in equities but we believe in a short burst of confidence was the next policy move. Our ‘bounce back basket’ is based on the following argument. Look for equities with high quality traits and which have fallen a lot since 17 January 2020 when China officially acknowledged COVID-19. The table below show 20 stocks with these characteristics across different sectors.
The market is trying to get back to the pre-Covid and pre-war times, but that model is broken. A new dawn is here and the financial world needs to adapt.
Steen Jakobsen,
Chief Investment Officer
A political switch in China towards less tough control of its people and companies may kick things back into gear.
Redmond Wong,
Market Strategist
While the economic situation in Europe may not be as bad as feared, there's still a plethora of things to fix.
Chris Dembik,
Head of Macroeconomic Research
As the world turns increasingly bipolar, equity markets face harsh times as they transition into the new reality.
Peter Garnry,
Head of Equity Strategy
New alliances and collaborations outside of China may lead to prosperous times in Asia.
Charu Chanana,
Market Strategist
For years, it was thought that the balanced portfolio was a thing of the past. But recent developments may have changed that.
Peter Siks,
Investment Coach
Following a dramatic and volatile 2022 with good returns, a lot of this year's commodity performance may be driven by Chinese politics.
Ole S. Hansen,
Head of Commodity Strategy
2023 could be a tough year for currencies but EUR and JPY may have some upside.
John J. Hardy,
Head of FX Strategy
The commodity-heavy Australian market may have a good start to 2023, as the Chinese focus on growth signals demand for Aussie resources.
Jessica Amir,
Market Strategist
From a near-perfect environment for speculative assets before 2022 to the opposite, crypto faces fundamental challenges.
Mads Eberhardt,
Cryptocurrency Analyst
