Although recent economic news suggests the US is heading for a recession, Citi Global Wealth’s chief investment officer, David Bailin, is optimistic that there will be opportunities for investors in 2021. According to Bailin, this will start with the expected market sell-off, which will provide good entry points for the savvy investor.
For those investors looking for stock performance, Bailin suggests playing defense for now, by focusing on high-quality companies with sustainable earnings and dividends. He also advises a mix of equities and bonds to take advantage of the assets that have moved differently.
But eventually, when the current bear market has concluded, Bailin believes it will be small, medium, and cyclical stocks that will be the first to recover, leading the way towards the overall recovery of earnings.
Longer-term, Bailin recommends investors pay close attention to six key sectors: cybersecurity, biotechnology, artificial intelligence, foreign and emerging markets, China, and growth and tech stocks.
Cybersecurity, in particular, is sure to be a top performer in a digitally-driven future. Biotechs, on the other hand, are set to benefit from tailoring medical treatment according to a patient’s specific genetic makeup. As for artificial intelligence, its usage and applications are expected to revolutionize the way we access and consume information.
Meanwhile, foreign and emerging markets, such as China and Brazil, are predicted to benefit from their economic reopening. Investors will also be looking for companies with strong fundamentals, as the market has made discipline a priority for companies to stay profitable.
David Bailin is the Chief Investment Officer of Citi Global Wealth, a premier private bank that provides clients with access to banking, investments and wealth planning. He has spent the last five years leading the team of experienced financial professionals that manage the portfolio of investments, offering strategic advice and portfolio reviews. With over a decade of experience in the field, Bailin’s expertise as an economist and investor have made him a valuable asset to Citi. His guidance and insights into the global financial markets have placed him at the helm of the company’s investment strategies.
