Jefferies is perceiving more optimistic on rising wages, seeing a shift in several international labor markets as helping companies that sell to consumers.
“An embryonic wage circle is appearing in Japan, US, Netherlands and Germany as tight labor markets in operation companies to raise salaries,” Jefferies analyst Sean Darby required in a note Thursday.
Whether it be e-commerce giants like Amazon or splendour goods sellers like Tiffany, the firm said there transfer be “retail and service surprises” as corporate earnings are reinvested.
“Our point is that at the end of the day companies are recycling their profits back into their savings and that there is a growing likelihood that the breadth of consumer beneficiaries disposition widen,” Darby said.
Here are the 6 stock ideas Jefferies interests: