Building or rebalancing your portfolio and wondering what investments to consider next?
Here’s what leading experts featured on BNN Bloomberg say investors should consider adding and dropping from their portfolios today.
Drew Pettit|Director of U.S. Equity Strategy, Citi
In your opinion, what single investment should investors own right now — and why?
Teradyne (TER) (Buy-Rated by Citi Research). The AI build out is real and semiconductors have clearly benefitted. However, the focus has mostly been on the bigger names, until recently. We still like the industry group broadly but see an opportunity down cap. The street just started moving estimates higher for smaller cap AI enablers, like Teradyne which makes semiconductor test equipment. AI tailwinds are showing up in its fundamentals as margins are set to expand as operational efficiency improves.
From your perspective, what is one investment investors should consider dropping from their portfolios — and why?
Consumer Staples. We believe it is too early to play defense. The market has been choppy, but pockets of risk under the surface are working. Therefore, we continue to shy away from defensives that have run up without supportive fundamental stories. Many Consumer Staples fit that narrative. They are still facing margin pressures. Also, valuations are far from attractive versus history, meaning they might not be as defensive as they once were in bouts of market stress.
DISCLOSURES: Citigroup Global Markets Inc. or its affiliates received compensation for products and services other than investment banking services from Teradyne Inc in the past 12 months. Citigroup Global Markets Inc. or its affiliates currently has, or had within the past 12 months, the following as clients, and the services provided were non-investment-banking, non-securities-related: Teradyne Inc.
In your opinion, what single investment should investors own right now — and why?
Any tech ETF – the cycle is turning and while investors are looking for safety during this uncertainty, tech will be the first to rebound.
From your perspective, what is one investment investors should consider dropping from their portfolios — and why?
The financial sector has had a tough timerecentlyandI think that the roadis bumpy ahead. Give it 6 months and then look back at it.
