by Daniel Shvartsman
We’ve become accustomed to U.S. indices leading global markets as far as performance over the past decade or so. Emerging markets and non-US developed markets have lagged through the bull market, and they’re lagging again in the coronavirus sell-off/recovery cycle.
Likewise, we’ve gotten used to momentum and quality outperforming value since at least the financial crisis. The market has gravitated towards the best stocks, and the nature of the covid-19 containment efforts is that it leaves specific sectors in great distress while accelerating adoption of other sectors.
I spoke with Tariq Dennison, author of Long Run Income, about each of these trends. To be more specific, I asked him about distressed opportunities he’s considering, including the cruise companies, about the non-US markets he follows and what opportunities he’s seeing, and the high quality names he has been picking up.
Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.
Additional disclosure: Daniel Shvartsman has no positions in any stocks mentioned.
Tariq Dennison is long CCL, RCL, NCLH, DEO, CHL, BKK:AOT, and HNLGY.
Nothing on this video should be taken as investment advice.
We will be posting a transcript next week.
Editor’s Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.