Investors should capitalize on the best stock-picking conditions in 'quite some time' and buy on any election-related weakness, says an adviser at the world's largest wealth manager
- Investors should capitalize on the best stock-picking conditions in "quite some time" and buy on any election-related weakness, UBS's Frank Panayotou said on Monday.
- The financial adviser said stocks in healthcare, industrials, consumer discretionary, and global markets looked attractive to him.
- Markets will continue to be supported by global monetary and fiscal policy, which is why investors should remain in stocks, Panayotou said.
- "Any pullback in the market will be an opportunity for long-term investors to add to risk and further re-balance portfolios into equities," he added.
- Read more on Business Insider.
Investors should capitalize on a strong stock-picking environment right now and view election-related volatility as a buying opportunity, according to a UBS Private Wealth Management adviser.
"Despite the obvious economic challenges, the landscape for active investors remains one of the best we've seen in quite some time," Frank Panayotou said on Monday.
He said that while some portions of the economy had been hit hard by the coronavirus pandemic, other areas "have seen their prospects enhanced or accelerated by structural shifts in activity."
Panayotou listed healthcare, industrials, consumer discretionary, and global stocks as four sectors he likes best right now.
He also said investors should expect near-term volatility stemming from the US election and concerns about an economic shutdown if a second wave of coronavirus infections emerges. However, he added that any drops in the market should be viewed as a buying opportunity, as an additional fiscal stimulus and the Federal Reserve will continue to provide support for markets.
"Any pullback in the market will be an opportunity for long-term investors to add to risk and further re-balance portfolios into equities," Panayotou said.
"We expect global central bank policy to be the key ingredient for supporting the continued healing of the global economy and a move back to more normal economic activity," Panayotou added. "Despite these assurances, markets will remain diligent for any signal that central banks could remove support prematurely before reaching a sustainable global economic recovery."