Today, Anastasia Amoroso, Chief investment strategist, iCapital and Rob Sechan, Managing Partner, New Edge Capital commented about whether WFC-N, XLI-N, MMM-N, ADBE-Q, HD-N, APO-N, IJR-N, XHB-N are stocks to buy or sell.
He added more AbbVie. Obviously, today's news about the disappointing drug trials is not good. This schizophrenia drug was projected to make $1.1 billion in sales four years from now. But today's share plunge is too great, overdone. He might add on even more weakness. Trades at 14x forward PE and pays a 3.9% dividend. It's a great company on sale. They have a long track record of making acquisitions.
Regarding the results of the U.S. election there should be less regulation which is pumping up financial service stocks as well as others. The fed rate cuts have engineered what looks like a perfect soft landing and this has been good for equity markets. Some of this has already been priced in with these surging markets. One of the market risks is that the stimulus package of the world's second largest economy, China, is not having a big impact. Earnings reports for big international companies have been affected by the weakness in China. However he thinks China's economy will get rolling again because China will keep on providing more stimulus measures.
There has been a move away from large cap tech, the magnificent 7 for the most part, and the market spreading out to undervalued companies.
The question was on his preference of this group of wealth management companies. He owns all three for different reasons. The possible lack of regulation under the new administration has already boosted them. They are in excellent financial shape and have good dividend growth. It is not an expensive sector.
M&A activity was turning around even before the election with $2 trillion of deals this year that exceeds that of 2021. Looking forward is the perfect environment for M&A. Upside to come.