www.varchev.com

Even if the rally ends tomorrow, BofA says these two areas could be a life raft for investors

Bank of America-Merrill Lynch trader

Rating:

12345
Loading...

Bank of America-Merrill Lynch is warning investors not to chase the rally.

Even though it's predicting the end is near, the firm isn't advocating a strategy which would push money to the sidelines.

"The market is trading quite elevated," said Marc Pouey, BofA Merrill Lynch's senior U.S. equity strategist, told. "But I think underneath the surface there are quite a few opportunities out there."

According to Pouey, there are two sectors which will likely be immune to a broader market downturn.

"Two of the glaring areas for me are financials and in health care which are both trading at a discount to the market here," he said.

Pouey sees financials as a growth story.

"We've seen over 10 percent dividend growth in the space. They're also buying back their stock very, very aggressively," added Pouey. "They're rewarding shareholders from that perspective."

He made the case for health care based on the sector's history.

"If you look back over the last three years or so, consistently — every single quarter — health care delivers top-line and bottom-line beats outside maybe a couple of quarters. They are really delivering the goods there," said Pouey, noting that biotech is a shining area, too

BofA's S&P 500 Index year-end price target is 2450; that's four percent below current levels.

As for market risks, the biggest issue is the lack of one.

Source: Bloomberg Pro Terminal

Junior Trader Stefan Panteleev

 Varchev Traders

Read more:

RECCOMEND WAS THIS POST USEFUL FOR YOU?
If you think, we can improve that section,
please comment. Your oppinion is imortant for us.
WARNING: Any news, opinions, research, data or other information contained within this website is provided as general market commentary and does not constitute investment or trading advice. Varchev Finance Ltd. expressly disclaims any liability for any lost principal or profits which may arise directly or indirectly from the use of or reliance on such information. Varchev Finance Ltd. may provide information, quotes, references and links to or from other sites and blogs and other sources of economic and market information as an educational service to its clients and prospects and does not endorse the opinions or recommendations of the sites, blogs or other sources of information.
Varchev Finance

London


25 Canada Square, Level 33, office 50, Canary Wharf London, E14 5LQ +44 20 3608 6256

Universal numbers

World Financial Markets - 0700 17 600    Varchev Exchange - 0700 115 44

Varchev Finance Ltd is registered in the FCA (FINANCIAL CONDUCT AUTHORITY) with a passport in the United Kingdom: FCA, United Kingdom - registration number: 494 045, which allows provision of financial services in the United Kingdom.

Varchev Finance Ltd strictly comply with the statutes of the European directive MiFID (Markets in Financial Instruments). targeting increased efficiency, transparency and uniformity of financial instruments.
Varchev Finance Ltd is authorized and regulated by the Financial Supervision Commission - Sofia, Bulgaria: License number RG-03-02-05 / 15.03.2006

The information on this site is not directed at residents of the United States or Belgium and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.


Disclaimer:

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63,41% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

chat with dealer
chat with dealer
Cookies policy