What does a bounce back basket look like?

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What does a ‘bounce back basket’ look like?

Equity markets are not one-ways streets although it has felt so the last two weeks. There will be bounce backs and at one point the policy response will be enough to hammer in a market low. When the time comes investors will have to be ready. In the short-term we don’t believe in an immediate market low in equities but we believe in a short burst of confidence was the next policy move.

Our ‘bounce back basket’ is based on the following argument. Look for equities with high quality traits and which have fallen a lot since 17 January 2020 when China officially acknowledged COVID-19. In the table below you see 20 stocks with these characteristics across different sectors.

bounce

Trading in financial products always involves risk. The value of investments can rise or fall and you could get back less than you invested.