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Time to move on? Here’s an investor’s advice on what to do after the election



The tally is continuing, but Wall Street is enjoying what they see from the election.

Even at a loss on Friday morning, futures on the S&P 500 ES00,
-0.72%
up about 4% since polls closed on the West Coast on Tuesday night, with even stronger gains for the tech-heavy Nasdaq 100 NQ00,
-0.99%.
Deutsche Bank’s Asia regional strategists said in a note to customers “it is time to move on,” though they say the uncertainty from it could still last several days.

Jim Smigiel, chief investment officer of non-traditional strategies at SEI Investments, says that the market is priced according to divided government. Smiegiel, who leads SEI̵

7;s asset allocation program. The Federal Reserve on Thursday kept interest rates unchanged and Chairman Jerome Powell said the central bank “doesn’t lose power” to do more.

“Monetary stimulus will do a good job of keeping liquidity moving in the market and will benefit stocks that are growing high,” Smiegiel added. “And you will probably find recreating themes a little bit difficult.”

Smiegiel said that the healthcare sector could be attractive due to the election. “A large-scale effort to rebuild the healthcare sector is probably unquestionable,” he said.

According to him, the oil sector is coming to a point where it can recover as supplies are removed from the market. The oil market “may not be ready for an increase in demand if we see a return to normal in 2021”.

Smiegiel said SEI, whose $ 738 billion assets under management at the end of September, is a fan of GCZ20 gold,
+ 0.50%.
“We still like gold here, though it’s gathering quite a lot,” he said. “Even in this situation, with divided government, which has somewhat curbed the huge rise in government debt, we still see this trajectory as just a path. So we see extremely low real yields, we see debt still rising at a fairly fast rate and, net net, we still see that it is a pretty good environment for gold investors. “

He said, currently, the S&P 500 SPX,
+ 1.94%
too focused. “You think you’re getting a diversified investment and 25% of your investment is just five names and they’re all big tech names,” he said, referring to the Apple AAPL,
+ 3.55%,
Microsoft MSFT,
+ 3.18%,
Amazon AMZN,
+ 2.49%,
Facebook FB,
+ 2.54%
and owners of Google Alphabet GOOG,
+ 0.81%.
Investors may want to switch to actively managed funds for a more diversified approach to the United States, Smiegiel said.

SEI is also beginning to pay more attention to emerging markets, especially in Asia. “We haven’t come up with anything yet, but those are definitely areas of interest because both our valuation and our outlook for recovery in those areas from an economic perspective of 2021.”

Buzz

The election is still on a knife edge as the world awaits results, with former Vice President Joe Biden maintaining the lead over President Donald Trump in electoral college elections. But the result is still too close to call. Biden almost got ahead of Trump on the Georgia battlefield. The President sent several tweets at 2 a.m. expressing his wish to challenge what he called an “illegal” vote that was tabled after election day. The two men were found outside the Pennsylvania Convention Center, which was counting votes, are being held after Philadelphia police were notified of the threat.

Nonfarm payroll data is limited at 8:30 am Eastern. The economy is estimated to have created around 530,000 jobs in October, according to economists polled by MarketWatch, which would be the smallest increase in recovery. The unemployment rate fell to 7.6%.

Coronavirus infections continued to spike, with the United States seeing at least 100,000 new infections on a second day. According to data from the European Center for Disease Prevention and Control, while cases in Europe are high, they are below their peak.

Income comes from companies including hotel operator Marriott International MAR,
+ 2.92%
and American International Group AIG,
+ 5.82%.

Zillow Z online real estate service group,
+ 3.90%
is set to rise after reporting record returns. Fitness equipment manufacturer Peloton Interactive PTON,
+ 6.77%
make a profit after revenue triples. News Corp. media group. NWS,
+ 3.96%
Reported earnings and sales that were higher than forecast. (News Corp. owns MarketWatch, the publisher of this report.)

Russian President Vladimir Putin plans to step down early next year because of health concerns, according to British newspaper The Sun, citing an anonymous source in Moscow.

Market

Some of the air will be released on Friday morning. Futures on the Dow Jones YM00 index,
-0.53%
decreased by 146 points.

DXY dollar,
-0.24%
slide and crude oil futures CL.1,
-3.14%
fall.

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