David Fingold, Vice President and Senior Portfolio Manager, Dynamic Funds
FOCUS: US and global actions
MARKET OUTLOOK:
Given the recent volatility of the equity and fixed income markets, we recommend that investors approach the markets by focusing on quality companies. We define quality companies as those with higher balance sheets, above-average profitability and constant profitability. Recently, the risk of recession has increased. Central banks intend to tighten financial conditions through rising interest rates and a gradual / quantitative tightening. Hopefully this will lead to high quality values ​​outperforming low quality ones.
There is accumulated demand for some capital goods and some financial institutions will benefit from higher interest rates. While consumers may face headwinds, it is to be expected that business investment will play a leading role in further economic expansion, as is often the case when the economy is halfway through the cycle. Defensive industries such as healthcare are attractive given their long-term performance and defensive attitude, as volatility tends to increase from this point in the cycle.
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BEST SELECTIONS:
David Fingold’s best options
David Fingold, vice president and senior portfolio manager at Dynamic Funds, talks about his best options: Schlumberger, AstraZeneca and Allstate.
Schlumberger (SLB NYSE)
Headquartered in Houston, Texas, Schlumberger NV also known as Schlumberger Limited is an oil services company. The company, through its subsidiaries, offers a wide range of services, including technology, project management and information solutions to the international oil industry, as well as advanced data acquisition and processing surveys. After a long cycle of decline, the growth of the company has resumed.
AstraZeneca (AZN NASD)
AstraZeneca PLC operates as a holding company. The company, headquartered in Cambridge, UK, through its subsidiaries, researches, manufactures and sells pharmaceuticals and medical products. AstraZeneca focuses its operations on eight therapeutic areas, which include gastrointestinal, oncology, cardiovascular, respiratory, central nervous system, pain control, anesthesia and infection. With few losses in exclusivity and a solid portfolio, the company has encouraging growth prospects.
Allstate (ALL NYSE)
Headquartered in Northbrook, Illinois, The Allstate Corporation, through its subsidiaries, offers liability insurance and other insurance in the United States and Canada. The company mainly sells private passenger car and homeowners insurance through independent and specialized brokers. Allstate also sells life insurance, annuities and group pension products through agents. We believe that there is a strong pricing environment for personal lines.
PAST SELECTIONS: August 6, 2021
David Fingold’s previous election
David Fingold, vice president and senior portfolio manager at Dynamic Funds, talks about his previous election: Hoya Corporation, Entegris and First Republic Bank.
Hoya Corporation (7741 TYO)
- Then: JPY 16,695.00
- Ara: JPY 14,025.00
- Yield: -16%
- Total return: -15%
Integrated (ENTG NASD)
- Then: $ 121.58
- Now: $ 112.86 (May 27, 2022)
- Yield: -7%
- Total return: -7%
First Republic Bank (FRC NYSE)
- Then: $ 203.75
- Now: $ 157.41 (May 27, 2022)
- Yield: -23%
- Total return: -22%
Average total return: -15%
7741 TYO YYI ENTG NASD NNN FRC NYSE
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