Throughout the pandemic, analysts have insisted on asking when stocks will return.
Now, a team of JPMorgan analysts led by the great quantitative guru Marko Kolanovic says the news of an effective vaccine means that long-performing price actions will nevertheless have their moment.
“The globally synchronized expansion environment, legislative stagnation, and positive vaccine news mark a breaking point for price actions, which have been defeated as a result of the COVID crisis,” they said. “On the other hand, impulse/growth prices are left behind. . “
Read more: Wall Street Bank explains why news about the effectiveness of Pfizer and BioNTech vaccines means a faster return to normal, and shares actions that should recover quickly as COVID panic dissipates
Based on forward-looking price-earnings ratios, JPMorgan has found that price shares have never been more reasonable compared to impulse stocks and therefore claims that investors deserve not to be underexposed to price shares. However, this good stock price fortune does not necessarily mean that expansion stocks will collapse. JPMorgan called on investors to adopt a “gym weight” strategy and balance their portfolios so that they are not overexposed to expansion stocks and are not underexposed to price shares. “Recent developments deserve to help revitalize price trading and give it greater resistance,” JPMorgan told me. “In an emerging market, the momentum is probably lagging behind, but given the higher fundamentals, it deserves not to see a total collapse (i. e. in absolute terms). In other words, we see price converging up rather than down. “