Credit Suisse’s Jonathan Golub urges investors to familiarize themselves with recreational games.
He advocates a comprehensive strategy that goes beyond reopening stores like airlines and hotels.
“It could be metals and mining companies. It could be machine and industry names. Chemical names,” the company’s chief strategist and head of quantitative research told CNBC’s Trading Nation on Monday. “This really is the place where the market hasn’t played yet. This is the stuff I think this is coming.”
Golub prefers groups that are tied to all incentives over pure reopening deals. He said he believes they will see benefits in the spades when “the economy starts really roaring and moving well”.
“I like stores like this where you buy airlines and cruise lines and restaurants and hotels. But that’s kind of an obvious trade, and it’s been picked up a bit more,” he said. “There are probably fewer options.”
Golub also believes shopping malls will see a boom as Covid-19 vaccines reach more people.
“Mall retailers should do really well when we reopen as opposed to broader consumer discretion,” he said.
Golub, who has an S&P 500 year-end target of 4,300, is bullish on the broader market as well. He doesn’t notice a rumble of a short-term retreat.
“This reopening of the economy will be much bigger than it is discounted in the market,” Golub said. “So for people who say, ‘How much of this good news is there already?’ Not nearly as much as you think. “
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