Despite omicron, Invesco lists emerging markets, China as top picks
[ad_1]
Kristina Holper, Invesco’s Regional Manager sees great opportunities in areas that are not being targeted by the majority of investors.
Despite the new omicron wave, she lists emerging markets — including China — as 2022’s top places to put money to work.
We knew that it would take more time for the emerging market population to be vaccinated. The firm’s chief global strategist said that there was a clear uptake and will be continuing well into 2022.Trading NationOn Monday, ” That means that 2022 for emerging markets should look like 2021 for developed markets, in terms of participation in an even more robust reopening.
The following are the results for this year. iShares MSCI Emerging Markets ETFThe index, which monitors large and small publicly traded companies located in developing countries, has been dramatically underperforming. S&P 500. The ETF is off 6% so far this year while the S&P 500 is up 24%.
Hooper admits it is not easy to invest abroad in China.
China has been deemed uninvestable by the majority. Hooper is particularly optimistic about China’s tech sector.
China’s legislature is undergoing major regulatory crackdown as part of its “common prosperity” push. Beijing regulators seek to increase control in tech, education, and e-commerce.
“It’s an actual contrarian play”
She stated that regulations have been focused on areas which are compatible with the long-term policies of China’s government. “We are now closer to the end any significant number of regulations than we were at the beginning. This is a great buying opportunity. It’s an interesting contrarian investment.
Hooper also believes that U.S. stocks are a good investment. This is more in line with the mainstream. Hooper is not concerned about U.S. stocks at this point. new Covid-19 omicron strainHere you can find more information.
This does not seem to be contagious but it is very mild. It suggests we won’t see lockdowns,” she stated. In the absence lockdown, mobility is what we should measure. Mobility has not suffered in the sense that people are able to get out of their homes and shop. [and] restaurants.”
Hooper also believes that Federal Reserve policies won’t disrupt the environment for risk taking.
Hooper stated that “The U.S. may experience a slowdown in its economy, as the Fed tightens and, ofcourse, as fiscal stimulus is removed.” “We will probably remain above trend for growth.”
Hooper’s perspective takes yet another, contrarian twist at this point. Her major calling includes U.S. tech stocks outperforming cyclicals. Hooper claims that Wall Street believes tech to be a better asset than other assets.
Hooper indicated that “cyclicals may outperform in the near term” given the strong December he expects. But I believe that secular growth will continue for the majority of 2022. [and] defensives, especially technology, perform better.”
Technology-heavy NasdaqThis year’s total is up 20%, and it has increased 125% from the low of the pandemic.
[ad_2]