Excerpt from the Financial Times quoting DataTrek’s Nick Colas:
…. “Markets, rightly in our view, see the US government as ultimately a stable enough set of institutions even if things occasionally go pear-shaped,” said Nicholas Colas, co-founder of independent research house DataTrek…
….Mr Colas at DataTrek added that among the current dogs, the likes of Chevron, Dow and 3M would have a “lot of leverage to an economic recovery”.
However, he said the fast-growing technology sector was seeing a boost to earnings from trends arising from the pandemic such as working from home. This will make it harder for the dogs to outperform. For contrarians though, this presents opportunities.
“Wherever you find your earnings surprise is what leads your share portfolio,” said Mr Colas“….
Read the full article here in the Financial Times!