Midway through 2021, hot stocks are out of fashion


The company sells a surprising amount of its sculpting lipstick, foundation and skin care creams at airports. Ms Perin Vinton is betting, in part, that the company’s sales will continue to rebound as vaccinated travelers return to the skies and people simply return to work and socialize face to face.

Now it’s really like we’re barely putting on a little makeup for a Zoom call, ”Ms. Perin Vinton joked.

It also bolstered its holdings in other companies poised to benefit from the recovery, including casino operator Las Vegas Sands and Airbnb, both of which are expected to benefit from the rebound in the travel and entertainment sector.

At Goldman Sachs Asset Management, the portfolio managers still focus on technology stocks with long-term potential, but they also look for companies that are closely linked to the current economic cycle, said Katie Koch, Global Co-Head of Funds at Goldman Sachs Asset Management. fundamental stocks at Goldman Sachs Asset Management. the company.

“We don’t want to be crushed by the cycle,” she said.

Goldman’s approach is to look at cyclical stocks which also have the potential to capitalize on long-term trends. Examples, Ms Koch said, could include an aluminum cans business, which could see an increase in business during the recovery while benefiting from a move away from single-use plastic. Or a copper miner, which will be supported not only by rising commodity prices linked to rising global demand, but also by the use of copper in transitional technologies such as solar and wind power.

While some stocks that were hugely popular last year have declined – Peloton is down 18.3%, and that’s an improvement over its treadmill recall – technology as a whole is not collapsing in In no case. Zoom Video Communications rose 14.7% in the first six months of this year, which only seems meager compared to an increase of almost 400% in 2020. The technology-heavy Nasdaq Composite Index, increased by 12.5% ​​in the first half. although cyclical stocks were the most successful.

The result is a large rally that analysts expect to continue. Interest rates remain low and the yield on the 10-year Treasury bill closed at 1.45% on Wednesday. Economists believe the economy will grow 6.5% this year, which would be the fastest rate since 1984, according to FactSet data.


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