US equities… a good start to the year and sectors that are candidates for the upside

The Standard & Poor’s 500 index opened trading in the first session of the new year near levels record, Monday, with equity markets trying to continue recovering from the shock of the Corona pandemic in 2022.

The Dow Jones Industrial Average fell 16.71 points, or 0.05%, to open at 36,321.59 points. The Standard & Poor’s 500 Index rose 11.96 points, or 0.25%, to 4,778.14, while the Nasdaq Composite Index rose 87.53 points, or 0.56%, to 15,732.50 in opening.

Ayman Abu Hind, head of investment strategies at Marine Capital Management, expected in an interview with “Al Arabiya” that investors will continue to be very concerned about the 2022 estimates, Regarding the performance of financial and real estate assets In the United States and global markets.

He pointed out that the rise in shares last year, as it came after the pandemic year, to remain positive in the year in course, on shares in growth and value such as the energy and financial sectors, which are the cheapest with their share prices, predicting that the opportunity to decline will remain for SPACS, but this decline will not affect the performance of technology stocks, which have seen acquisitions according to this approach in the last year.

In turn, Morgan Stanley’s equity strategists advised diversification of investments by looking for stocks that experienced steep declines last year and achieved attractive valuations.

Adding these shares to the shares of major defense companies, which formed the investment platform for Morgan Stanley’s strategy in 2021, would allow for better performance for investment portfolios.

Morgan Stanley analysts had expected major companies to achieve weaker returns questcompared to those achieved in 2021, given their high valuations, the slower pace of economic growth compared to last year, as well as the decline in quantitative easing measures by central banks.

However, the Morgan Stanley report believes that the fortunes of large real estate, healthcare and consumer staples firms remain better than the rest of the market, as well as small and medium-sized businesses that have not caught up with last year’s earnings. year.

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