Market strategy: invest in technology, finance in 2022

Samantha Azzarello is JP Morgan Asset Management’s global marketing strategy. The following are excerpts from our interview :

Kipling: Do you see the US stock market led

In 2022

Where Azar raloxifene: we see a continuation of the bull market. Background for this situation is to keep a positive trend of economic growth is that it’s on the road remains, corporate earnings growth is sustained and profitable growth. If everything remains the same, we believe that the likelihood of a bear market in 2022 is close to zero. This means that we are in the later stages of the US economic expansion, it is more selective and take some risk your portfolio is a good idea.

What is your forecast for economic growth? This is a plurality of identical. We believe that the trend in gross domestic product (GDP) growth of about 2.5% to 2022 this is not fireworks, it is worth. However, a slower growth glimmer of hope is that we can grow to much longer. US companies also benefited from the recovery in global economic growth, I do not think it is stressed enough. And stock fundamentals are supported.

like? When I think of the fundamentals of equity, I think two questions: First, the company is more profitable than they were before, or a quarter of the previous year? And two, the underlying shares cheap? Earnings growth is there, and it is true. It’s not just cutting costs to support earnings, and that is a positive real income growth in the future, you can not say anything silly. We expect revenue growth of about 5% of the S & P 500-ST Ock index growth in earnings and high single digits. Profit margins are high, but we think they can continue. If you keep profit margins high, then any income supercharges bump to earnings.

but the stock is not cheap. What valuation? equity valuations more art than science. And that will tell you when to get out of the market there is no clear price-earnings ratio. Think of a traffic light. Is there anything about the valuation now screaming green. But at the same time, there is no red light, either. Elsewhere we are in the middle, a yellow light. It is difficult to navigate, which is why youNeed more options, why do you need to be picky when it comes to investment styles, themes and industry, this is what’s going to affect your R E opened next few years, because the valuation is so high.

Should put their money where investors now? We still love faster than average earnings growth of stocks of large companies. They have worked well in this environment, we believe that they are here to stay for some time. We do not like to rely on some of the future tax reform or deregulation from Washington to rally behind the small-cap stocks. We can behind small-cap stocks in 2022, but it depends on something really out of anyone’s control. In the industry, we like the technology, not just sexy, social media story. We like the high-tech across the board. There are many interesting things will be in technology, it’s all on the basis of long-term growth of the industry. We also like finance. People think financial stocks is the story of a rising rate. This is part of it; with rising interest rates, they will benefit. But why do we like the financial heart that we think they are underrated. We believe that they play in the future production. People need and financial dividends will begin to restore a lot of cash investors. It will be a long-term trend in the sector.

You’ll have emphasized other topics? We are talking with customers is something that we are late in the bull market cycle. No one can call ends. However, we are looking for overheating or significant imbalances and to see GDP growth, inflation and corporate debt levels. Risk-averse investors should ensure that there are variations in quality stocks they buy. A high-quality, I mean, Jampa gun sheets, strong management, and payment of dividends, and the ability to generate long-term sustainable returns. And you also need good, high-quality fixed income in your portfolio, such as bonds or high-quality corporate bonds. They contend stock. They are like an umbrella, you need them in the storm. The problem is, you can not buy an umbrella once the storm hits.