Hi, I'm Linda Duessel, Senior Equity Strategist at Federated Hermes.
How should investors plan to navigate the market?
So how do we navigate? First of all, those crowded trades, some of those areas of the marketplace, very, very crowded, very, very expensive. We might want to avoid those now. We might want to look now as it's not all boats will be lifted at this point of time, it will be much more of a stock pickers market. There are excellent companies out there that have quality, that will have the ability to have the pricing power in the event that they need to because of the shortages that we've spoken about. Quality cyclicals be a very good area, we think, are attractive. And then finally, an area of the marketplace that I might argue is probably the last stone to be turned over as we're all looking for investment ideas and that is high quality dividend oriented stocks. People have avoided the defensive high quality dividend areas because the market's just done so well and that makes a lot of sense, but some of these stocks are very, very inexpensive versus their history. And of course, an excellent place to go if you're looking for some income.
Disclosure: Views are as of May 14, 2021 and are subject to change based on market conditions and other factors. These views should not be construed as a recommendation for any specific security or sector. Past performance is no guarantee of future results. There are no guarantees that dividend paying stocks will continue to pay dividends. In addition, dividend paying stocks may not experience the same capital appreciation potential as non-dividend paying stocks. Investments are subject to risks and fluctuate in value. Federated Equity Management Company of Pennsylvania 21-40298 (6/21)