UBS strategists predict a short-term rise in global stocks due to excessive sales, which in the past were often replaced by an improvement in the market situation. The company believes that the fall in stock prices has created favorable conditions for growth, especially for stable and reliable stocks, which should form the basis of investment portfolios. UBS notes the underestimation of the strategy of investing in stocks with high growth rates. Historically, in such cases, these stocks have shown better results than the market average over the next month. Despite declining yields on inflation-protected Treasury securities (TIPS), which typically support the value of growth-oriented stocks and technology stocks, these sectors did not show the expected results. Such a deviation from forecasts increases the likelihood of their growth in the future. UBS identified overrated (tobacco and utilities) and undervalued (semiconductors, luxury goods, hospitality and leisure, software, automotive) industries. Among the American companies with excessively reduced shares, UBS named Intel (INTC), Super Micro Computer (SMCI), Celsius Holdings (CELH), DexCom (DXCM), UiPath (PATH) and others. CrowdStrike (CRWD) is also included in the list of undervalued stocks.
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