But they may be missing out on some promising and steady returns in the equity market in the meanwhile, according to portfolio managers at JPMorgan Asset Management.
“No matter what happens in
In fact, it may be some of the hardest-hit sectors, such as consumer discretionary and financial services, that may be the best place to weather the ups and downs of the markets, said
“I’m focusing on high-quality names,” he explained. “There’s no question that the company management who are bold enough to take advantage of the downturn and make great acquisitions are the ones who have led our performance.”
To that end, Simon leans toward companies such as
“To me, there’s still a lot of upside to depressed names,” Simon said.
In addition, the consumer discretionary sector can bring good cash flows despite skepticism about consumer confidence and spending, Simon added. “The US consumer has propensity to spend and occasionally look too stretched from a balance sheet standpoint, but that’s not how we think about it,” he said. “We think in terms of whether these companies are offering consumer particularly good value and can continue to generate good cash flows even in weak consumer spending environments.”
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