With the spread of the coronavirus triggering the pounding of global markets last week, wealth managers are telling clients there is plenty of opportunity to profit.
Fears about the virus have led to $344 billion being erased from the wealth of the world’s 500 wealthiest people as of Thursday, Bloomberg writes.
The S&P 500 had fallen by more than 10% from its recent peak and entered a correction by Thursday. The plunge marked its quickest correction since the Great Depression, according to the Financial Times, while Friday further eroded stock values.
While the spread of the deadly virus is also spreading concerns that the longest bull market in history is coming to an end, UBS Global Wealth Management is telling clients that it’s a good time to invest, according to Bloomberg.
“While we are not trying to call the bottom of the market, past experience suggests this is a good time to invest in U.S. stocks for investors with a time horizon of several months or more,” Mark Haefele, chief investment officer at UBS Global Wealth Management, said in a note cited by Bloomberg. In a separate note, he recommended that clients look into U.S. consumer discretionary and communications, and said that content providers and e-commerce could be a defensive play “and potentially even beneficiaries of more time being spent at home,” according to the news service.
JPMorgan Private Bank’s global investment specialist Anastasia Amoroso, meanwhile, suggests that clients turn to options to take advantage of “a near-term bounce off extremely oversold levels,” Bloomberg writes. She also says that clients with an investment horizon of six months or more should “selectively” load up on investments in U.S. and China tech firms, as well as healthcare and electric vehicle makers, according to the news service.
Meanwhile, Tony Roth, investment chief at Wilmington Trust, suggests that qualified investors turn to private markets to invest “in opportunities that take advantage of stressed companies, distressed opportunities and bankruptcies,” he said, according to Bloomberg.
Do you have a news tip you’d like to share with FA-IQ? Email us at email@example.com.