Trading an upside-down market — stock picks from 2 top-ranked growth investors — building the perfect election portfolio

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Dear Readers,

With major US stock indexes back within shouting distance of record highs reached before the coronavirus crash, one might think the market is headed back to business as usual.

Not so fast.

Even if those lofty levels are attained in the coming weeks and months — something viewed as eminently achievable by JPMorgan — there’s a growing consensus that long-standing market conditions will be turned on their head. Suddenly, simply buying proven mega-cap tech winners and banking on their prices to soar may not be the best strategy.

Many experts across Wall Street have instead trained their attention on the areas of the market best positioned to capitalize on the sudden wave of dislocation.

Jeffrey Kleintop, the chief global investment strategist at Charles Schwab, falls into that camp. He sees a surprising stock-market rotation playing out for the first time in 12 years. And rather than tout the growth merits of tech, he’s far more interested in the upside offered by by financial and industrial shares — plus international stocks.

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Morgan Stanley’s US equity chief Mike Wilson also has some interesting recommendations pegged to his expectation for a swift V-shaped economic recovery. He’s already advising investors to hitch their wagons to so-called cyclical stocks, which outperform during expansion periods.

But he’s not talking about tech. He instead sees the opportunities in financial and small-cap shares.

Those are ultimately just two examples of what the Investing team at Business Insider has explored over the past several days. See below for our best stories of the week, including a wide array of recommendations, strategies, and tips for navigating a historically uncertain landscape.

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Thanks for reading!

— Joe

Join Business Insider on July 8 at 12 p.m. ET for “Planning for the Future in Uncertain Times,” a free digital event and part of the Master Your Money series. Presented by Fidelity, it will explore components of a strong financial plan and how to adjust it given recent events. Click here to register.

Stock picks from two of the world’s best portfolio managers

Morgan Stanley’s Dennis Lynch and Kristian Heugh run the No. 1 US and international large-cap funds of the past decade. Both manage or co-manage several funds that have doubled investors’ money or better in recent years.

The two highly successful growth investors told Business Insider about the stocks that they think have the most potential in the new decade. Spoiler alert: they’re not sold on mega-cap tech titans like FANG in the long run.

Read the full story here:

Wall Street’s best US and international stock pickers have tripled their clients’ money since 2010. The duo break down 5 future-proof companies that could keep investors ahead of the pack through 2030.
20 companies that will keep paying strong dividends

Jefferies strategist Desh Peramunetilleke says investors don’t appreciate how many more companies are going to cut their dividends in the …read more

Source:: Business Insider


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