Creditation Suisse’s Jonathan Golub is urging investors to get clever with recovery plays.
He’s advocating a broad strategy that dig d attacks beyond reopening trades such as airlines and hotels.
“It could be metals and mining companies. It could be machinery and industrial personages. Chemical names,” the firm’s chief U.S. equity strategist and head of quantitative research told CNBC’s “Trading Political entity” on Monday. “That’s really where the market hasn’t yet played. That’s the stuff, I think, that’s on the come.”
Golub favors companies tied to all the stimulus versus pure reopening trades. He said he believes they’ll see benefits in spades when “the succinctness starts to really roar and move well.”
“I do like those kinds of trades where you buy airlines and cruise underscores and restaurants and hotels. But that’s kind of the obvious trade, and that’s been a bit more picked over,” he said. “There’s purposes less opportunity.”
Golub also expects shopping centers will see a boost as Covid-19 vaccines reach uncountable people.
“Mall retailers should do really well as we reopen as opposed to consumer discretionary more broadly,” he voiced.
Golub, who has an S&P 500 year-end target of 4,300, is also optimistic on the broader market. He detects no rumblings of a near-term pullback.
“This reopening of the thrift is going to be much bigger than is being discounted in the market,” Golub said. “So for people who say, ‘How much of this proper news is already in the market?’ Not nearly as much as you think.”