Investors may want to consider putting in new money to work in stocks.
According to Jeff Mills of Bryn Mawr Trust, this recent cataclysm has created significant investment opportunities in circular and value equities.
“”[These areas] I’m really encouraged in a market that has really died in most of the two months. “ The company’s chief investment officer is CNBC’s “Trading country” on Wednesday.
Mills believes the pain comes first, but he lists energy, material, industry And Small hat As his top investment chooses, as they are tied to economic recovery and work well in the often rising interest rate environment.
“We see that the average inventory of the Russell 1000 is now down about 10%,” he said. “Zero percent of energy names are above the 50-day moving average.”
Among the energies, Mills is particularly bullish EOG resource, Producers of shale oil and natural gas.
“This is our favorite name in the energy sector. You can see that the product is starting to stabilize. We’ve already seen energy stocks hit hard,” Mills said. Stated. “That is, if you have a period of 6 to 12 months, for example, I would like to continue to consider it here.”
With $ 21 billion in assets under its control, Mills is wary of recent momentum in other parts of the market.
“This kneeling reaction we really had later [June] Everyone is a big stock, growth, Technology — What I don’t really think will continue is really the muscle memory of this market, “he said.
Mills are periodically bullish, One of his biggest underweights is Big Tech. His warning to investors: The group’s two-month jump is unsustainable, as rising interest rates create a big headwind.
“Big Tech has responded to this very sharp drop in interest rates that we’ve experienced in the last few months, and I think it’s bottomed out at this point,” said Mills, a CNBC contributor.
Wednesday benchmark 10-year government bond yield Closed 8 basis points to 1.29%. On Monday, it sank to a five-month low.
“It’s interesting that the S & P 500 bounced four or five times from the 50-day moving average,” Mills said. “The fact that I saw some strength at that skill level right after Monday makes me feel pretty good.”
Disclosure: Bryn Mawr Trust owns a stake in EOG Resources.
Economically linked “dead” stocks beat Big Tech: Jeff Mills
Source link Economically linked “dead” stocks beat Big Tech: Jeff Mills