Stock Market logoStock Market Station

All the stock market news, every minute updated!

21 June 2021
22:05 hour

2 UK stocks I’d buy for a K-shaped recovery

The Motley Fool UK

15/02/2021 - 11:46

Edward Sheldon believes the economic recovery ahead is likely to be 'K-shaped'. Here are two UK stocks he has bought for this type of recovery. The post 2 UK stocks I’d buy for a K-shaped recovery appeared first on The Motley Fool UK.


READ THE FULL ARTICLE ON THE MOTLEY FOOL UK

Related headlines:

  1. NewsWatch: Housing is a luxury? Here’s what the K-shaped recovery means for real estate (06/03/2021 - Market Watch)
    A K-shaped recovery from the COVID-induced downturn could be accompanied by an increasingly unequal housing market.
    [visit article]
  2. NewsWatch: Housing is a luxury? Here’s what the K-shaped recovery means for real estate (07/03/2021 - Market Watch)
    A K-shaped recovery from the COVID-induced downturn could be accompanied by an increasingly unequal housing market.
    [visit article]
  3. NewsWatch: Housing is a luxury? Here’s what the K-shaped recovery means for real estate (07/03/2021 - Market Watch)
    A K-shaped recovery from the COVID-induced downturn could be accompanied by an increasingly unequal housing market.
    [visit article]
  4. Market Snapshot: Housing is a luxury? Here’s what the K-shaped recovery means for real estate (06/03/2021 - Market Watch)
    A K-shaped recovery from the COVID-induced downturn could be accompanied by an increasingly unequal housing market.
    [visit article]
  5. Market Snapshot: Housing is a luxury? Here’s what the K-shaped recovery means for real estate (06/03/2021 - Market Watch)
    A K-shaped recovery from the COVID-induced downturn could be accompanied by an increasingly unequal housing market.
    [visit article]
  6. V for Vindication: A Budget for V-shaped recovery (10/02/2021 - Financial Express)
    V for Vindication: A Budget for V-shaped recovery
    [visit article]
  7. Cowen likes chips and bricks for the V-shaped recovery (07/04/2021 - Seeking Alpha)

    [visit article]
  8. Mexico Imports of Wood Continuously Shaped (13/02/2021 - Trading Economics)
    Imports of Wood Continuously Shaped in Mexico decreased to 12683 USD THO in December from 12714 USD THO in November of 2020. Imports of Wood Continuously Shaped in Mexico averaged 13062.65 USD THO from 2014 until 2020, reaching an all time high of 20812 USD THO in August of 2018 and a record low of 4467 USD THO in May of 2020. This page includes a chart with historical data for Mexico Imports of Wood Continuously Shaped.
    [visit article]
  9. Right Now It's All About Figuring Out What the Next Cookie Is. EcoNOMNOMics Theory. (12/02/2021 - Reddit Stocks)
    I have a theory about what is going on in the market. As a result of uncertain financial conditions during 2020 and the Gamestop event in 2021 there has been an explosion of people interested in investing in stocks. One metric to measure this is by looking at subscribers to the investing subs on Reddit. WSB (~800K Jan 2020 to ~8.8M Feb 2021): https://subredditstats.com/r/wallstreetbets, Stocks: (~473K Jan 2020 to ~2.17M Feb 2021) https://subredditstats.com/r/stocks, Investing (~880K Jan 2020 to ~1.6M Feb 2021) https://subredditstats.com/r/investing, Penny Stocks (~130K Jan 2020 to ~1.1M Feb 2021) https://subredditstats.com/r/pennystocks Day Trading (~45K Jan 2020 to ~370K Feb 2021) https://subredditstats.com/r/daytrading ... The list goes on and on. You get the picture. In addition, with a lot of people still working from home, stimulus checks, entertainment venues (and restaurants and bars) being closed and the K-shaped recovery we have a lot of wealthier people stuck at home during the day who have extra cash. In essence, there are a lot of new investors with time, money and access to a personal computer. There have been a lot of articles about the K-shaped recovery: https://www.forbes.com/sites/chuckjones/2020/10/24/three-charts-show-a-k-shaped-recovery/?sh=3ebea945305f, https://www.bloomberg.com/news/articles/2020-12-10/how-a-k-shaped-recovery-is-widening-u-s-inequality-quicktake etc. My theory, and here is where it is just a theory, is that there are a lot of new investors who do not have the trading experience or fundamental analysis skills to judge valuation of a company and its stock price, essentially whether a company is fundamentally strong or not*. Thus, you are seeing these massive runups for stocks beyond GME where fundamental analysis has been thrown out the window. Balance sheets, whether company actually sells something, cash flow, strength of the management, do not really matter because if you heard about it on twitter it could be a good buy. Essentially any stock that gets hyped is becoming a meme stock. I’m calling this EcoNOMNOMics theory**. Basically, when you have a lot of inexperienced investors they are essentially like children who will NOM on anything sweet given to them regardless of the fundamental value of the thing they are eating (nutrients, macros, is this actually good for me? Etc.). They experience the sugar high of seeing the stock shoot through the moon until it crashes like blood sugar but then they still want more so its on to the next stock. Right now, it’s all about figuring out what the next cookie is. *You might argue that the true valuation of a company is going to be different depending on how you measure it...is it assets and liabilities balance, revenue, strength of the product etc. Some people believe the value of a stock is determined solely by supply and demand (i.e. its worth that much if people are willing to pay that much). I realize this is tricky territory. **These are just my thoughts. I don’t claim to think this is 100% right. I’ve just been thinking about it a lot. Thanks for reading!   submitted by   /u/baabaablacksheep4 [link]   [comments]
    [visit article]
  10. NerdWallet: How to manage debt in a K-shaped recovery (16/03/2021 - Market Watch)
    In an uneven economic recovery, how you manage your debt depends on whether you're in the top or bottom 50% of the economy. Here's how to look at and pay off debt in 2021.
    [visit article]
  11. NerdWallet: How to manage debt in a K-shaped recovery (16/03/2021 - Market Watch)
    In an uneven economic recovery, how you manage your debt depends on whether you're in the top or bottom 50% of the economy. Here's how to look at and pay off debt in 2021.
    [visit article]
  12. Project Syndicate: Avoiding a K-shaped global recovery (24/03/2021 - Market Watch)
    The rich countries have spent a lot to support their economies; they should help the rest of the world do the same.
    [visit article]
  13. Project Syndicate: Avoiding a K-shaped global recovery (24/03/2021 - Market Watch)
    The rich countries have spent a lot to support their economies; they should help the rest of the world do the same.
    [visit article]
  14. RBI MPC may keep accommodative stance, maintain system liquidity; COVID fuels concerns of K-shaped recovery (01/06/2021 - Financial Express)
    RBI MPC is set to announce its policy choices later this week. It has so far deftly juggled amid its objectives of inflation, bond yields and the rupee.
    [visit article]
  15. Equity MFs see inflows after 8 months (08/04/2021 - Financial Express)
    Higher gross sales and lower redemptions for the month is clearly an outcome of faith in subsiding the fear of Covid-19-led slowdown in economy to V shaped recovery in many sectors across the economy.”
    [visit article]
  16. Residential real estate may stage a K-shaped recovery in FY22: Ind-Ra (10/03/2021 - Financial Express)
    Grade I players are likely to see a surge in growth from a moderately strong base, while non-Grade I players are likely to see a reversal of the sharp decline experienced in FY21.
    [visit article]
  17. SBI Life Insurance: Maintain ‘buy’ with FY23E-based target price of Rs1,223 (10/03/2021 - Financial Express)
    FY21 business momentum recovering on APE, NBP and sum assured. Growth in individual APE, total APE and individual sum assured has made a V-shaped recovery for SBI Life.
    [visit article]
  18. Analysts and Recovery stocks (29/04/2021 - Reddit Stocks)
    I'm wondering why almost all the recovery stocks (CCL, AAL,..) are considered underperforming by analysts. Sooner or later everything will reopen and at that point those stocks should jump high. Am I missing something?   submitted by   /u/hinthue [link]   [comments]
    [visit article]
  19. Will India’s second wave shatter hopes of a V-shaped economic recovery? (11/05/2021 - Financial Express)
    The Ministry of Finance’s April 2021 economic review expects the economic impact of the second wave to be lower than the first wave, as “economic activity has learnt to operate with COVID-19.”
    [visit article]
  20. The End of Stimulus (05/03/2021 - Reddit Stock Market)
    I just wanted to provide some perspective on what’s happening here. If you go back to March of 2020 you see one of the largest selloffs in history, then you see the now famous “V-Shaped Recovery.” Let’s take a look at what fueled that “Recovery”: A 3 Trillion Dollar Stimulus Package Three trillion dollars is crazy, it’s 3,000 BILLION dollars. So if you made $1,000,000 a year it would take you three million years to earn three trillion dollars. This is an insane amount of money and we’re about to do it again in the form of a 1.9 trillion dollar package. That’s an unprecedented amount of liquidity added to the economy in just one year. The Fed lowering rates to 0% The Fed was raising rates before COVID because the economy was looking healthy, suddenly everything looked very unhealthy and the Fed dropped the prime rate to 0%. This means it’s basically free to borrow money which kept people borrowing in a really uncertain time. This was great in an environment when we needed to keep people spending like we did over the pandemic. So, what changed? All this extra liquidity and free money is starting to rear its ugly head. People are losing confidence in the future value of the US dollar and the main indication of this is the yield on the 10-Year Treasury Yield. It’s fine if the yield grows slowly, that’s actually a sign that the recovery is working but what’s happening is that the yield is SPIKING and that’s worrisome for investors. It means that bond buyers are anticipating rapid inflation which is obviously bad for the economy. Why does this matter? Remember the V-Shaped Recovery? That was based on extra liquidity provided by the legislature AND low interest rates. However, in a case where inflation is out of control, the Fed has a decision to make; either let the dollar lose value rapidly causing prices to increase across the board or raise rates and stall the recovery. Mind you there is no real good decision for Jerome Powell here. He needs to decide whether to let all the cash sitting in bank accounts lose value or stop the economic recovery. So far he’s signaling that he will wait until the dollar hits 2% before he does anything. I’m not advising you to do anything, I’m just trying to shed light on why markets are freaking out.   submitted by   /u/MiloGoesToTheFatFarm [link]   [comments]
    [visit article]
  21. Treasury Yield at 1.48(?) and why that's important? (25/02/2021 - Reddit Stocks)
    So, I'm new to this like most people, right? Got in at December, I've had insane growths through luck but I have an abhorrent lack of fundamentals. Just recently saw this thing about the treasury yield and why it's high, how that's important, and how that can influence the market and I don't think I"m able to relate everything. So, what I've gotten is that the yield will rise when inflation or recovery occurs. In today's situation, inflation and recovery are both on the table which is why it's being driven up so high atm. I don't understand why that's negative for the stock market and growth stocks in particular. Wouldn't it be better to invest in stocks when there's inflation and wouldn't it be better for stocks if there was a higher rate of economic recovery?   submitted by   /u/The_Start_Line [link]   [comments]
    [visit article]
  22. Deciding if I should rotate from growth to value stocks now (14/03/2021 - Reddit Stock Market)
    I'm seeing a lot of articles saying to sell off my tech and growth stocks since they're too expensive and to go all in on value and recovery stocks instead. About 35% of my portfolio is in QQQ and I'm wondering if it would be a good idea to swap it out for small cap value (VBR). I personally believe tech will continue to become dominant over the next few years, but almost every analyst I hear about says that investments in tech will instead have poor returns for a very long time. I'm still young and have plenty of time to wait for my investments to grow, but I do prefer to not see long stretches of underperformance. Any thoughts on swapping to value and recovery stocks now?   submitted by   /u/myabilitytowrite [link]   [comments]
    [visit article]
  23. NewsWatch: Stocks pare drop but hold lower as Fed’s Powell calls economic recovery ‘far from complete’ (23/02/2021 - Market Watch)
    Stocks lose ground, with tech shares continuing to lead the way down, as Federal Reserve Chairman Jerome Powell warns the economic recovery remains uneven and far from complete.
    [visit article]
  24. Fed to stress test banks with 'W'-shaped severely adverse scenario (14/02/2021 - Seeking Alpha)

    [visit article]
  25. How the Paypal Mafia shaped Silicon Valley (16/04/2021 - Reddit Stock Market)
      submitted by   /u/gordon22 [link]   [comments]
    [visit article]
  26. The INCREDIBLE coincidences that shaped Silicon Valley (04/06/2021 - Reddit Stock Market)
      submitted by   /u/gordon22 [link]   [comments]
    [visit article]
  27. European Stocks Higher on Recovery Hopes; Oil Stocks up After Attack on Saudi (08/03/2021 - Investing.com)

    [visit article]
  28. Markets poised for a slower recovery: What should be your investment strategy? (06/05/2021 - Financial Express)
    After an optimistic Budget that projected a quick economic recovery, the second Covid wave has thrown out the economy out of its recovery track again.
    [visit article]
  29. Second covid-19 wave unlikely to hurt recovery; brokerages say buy these stocks on correction (16/04/2021 - Financial Express)
    Benchmark indices have now corrected a modest 6% from their recent highs but many stocks have undergone a heavy 15-20% decline.
    [visit article]
  30. What are your value short term picks to buy when the selloff stops? (06/03/2021 - Reddit Stocks)
    I have been researching many stocks that took a big beating trying to pick my next buys to ride the wave after the market stops freefalling. Unfortunately money is limited and I don't want to get locked up in bad value picks that stay stagnant. I am not speaking of meme stocks either. I feel there are some good recovery plays in the travel and fuel industry. I believe there would be value in more traditional stock rather than high tech ones given the absurdly abstract valuations these days. Companies that have an established product. I am watching oxy, trvg, amd and tsm (long term hold on this one). I am looking to reap some short term gains to divert into long term value picks. What stocks are in your watchlist to pull the trigger once recovery starts?   submitted by   /u/x69pr [link]   [comments]
    [visit article]
  31. A gender lens on recovery packages (12/03/2021 - Financial Express)
    Exuberance in financial markets alone is no indicator of recovery. Sans response in terms of gender equality, recovery will be unsustainable
    [visit article]
  32. The Tell: These ‘sweet sixteen’ recovery stocks still have upside, according to Raymond James (09/02/2021 - Market Watch)
    It's getting harder to find once-beaten-down U.S. stocks that haven't mostly returned to pre-COVID levels, these analysts note, but there are a handful of options.
    [visit article]
  33. The Tell: These ‘sweet sixteen’ recovery stocks still have upside, according to Raymond James (09/02/2021 - Market Watch)
    It's getting harder to find once-beaten-down U.S. stocks that haven't mostly returned to pre-COVID levels, these analysts note, but there are a handful of options.
    [visit article]
  34. Outside the box COVID recovery ideas. (16/03/2021 - Reddit Stocks)
    Airlines, hotel, live events are all obvious choices for recovery stocks. I’m trying to think of things that less obvious, janitorial services that office and retail space will need again, distribution companies for all the reopend retail and restaurants. That kind of stuff. Any ideas?   submitted by   /u/dirtbagmagee [link]   [comments]
    [visit article]
  35. Father’s Day 2021: Date, Significance, Origin and Quotes (19/06/2021 - Financial Express)
    The day is also opportune to remember the few elders of ours who have shaped the perspective and outlook of our lives and lent their priceless advice and experience in making things right for us.
    [visit article]
  36. Inside Track: Do you know who shaped Modi’s vision for AtmaNirbhar Bharat campaign? (14/02/2021 - Financial Express)
    Chief Economic Advisor Krishnamurthy Subramanian has a Phd in economics from Chicago University, with Raghuram Rajan as his doctorate supervisor.
    [visit article]
  37. NewsWatch: If you think it’s time to shift to value stocks, here are Wall Street’s favorites (23/02/2021 - Market Watch)
    Rising interest rates and a recovery of energy prices may signal a switch for investors after a years-long appetite for growth stocks.
    [visit article]
  38. Most efficient way of evaluating market sentiment ? NoCharts (19/05/2021 - Reddit Stock Market)
    Hello fellas, I am intrigued on how the most efficient way of evaluating market sentiment would be WITHOUT reading charts; As I know charts could only tell you so much. However , sentiment will tell much more. I am tired of reading charts and making an educated hypothesis on where it shall go, usually it goes as planned or remains stagnant due to no sentiment towards the stock. So I was wondering , what services do you guys use(if any) to find what people are interested in ? I have been researching COVID recovery stocks as I saw a message that NYC shall be reopening tomorrow , but COVID recovery stocks are practically common sense at this point. Thank you for any suggestions .   submitted by   /u/052000Pw [link]   [comments]
    [visit article]
  39. Deep Dive: If you think it’s time to shift to value stocks, here are Wall Street’s favorites (23/02/2021 - Market Watch)
    Rising interest rates and a recovery of energy prices may signal a switch for investors after a years-long appetite for growth stocks.
    [visit article]
  40. Great news for cyclicals! Employment rates recovery for February (05/03/2021 - Reddit Stocks)
    https://www.marketwatch.com/story/u-s-economy-adds-379-000-jobs-in-february-as-hiring-speeds-up-11614951413 I was feeling a bit bummed yesterday because of jobless claims data and Powell's 'long way from recovery' but this is certainly good news for the economy and cyclical stocks. Cheers all!   submitted by   /u/ck3isbugged [link]   [comments]
    [visit article]
  41. London Markets: FTSE 100 climbs atop 7,000, as miners lead recovery and reopening stocks higher (05/05/2021 - Market Watch)
    London stocks surged on Wednesday as investors scooped up equities after a day of selling, led by mining shares.
    [visit article]
  42. London Markets: FTSE 100 climbs atop 7,000, as miners lead recovery and reopening stocks higher (05/05/2021 - Market Watch)
    London stocks surged on Wednesday as investors scooped up equities after a day of selling, led by mining shares.
    [visit article]
  43. Recovery periods for movements post earnings releases (04/06/2021 - Reddit Stocks)
    Hi everyone, I was looking at stock movements after earnings release and I wanted to get a sense of how long it takes for the stock to recover after a movement the next day. I had a very simple strategy where I would buy a stock sometime before the date of earnings (to be calibrated also) and either sell it if it rises or hold on until it recovers (if it ever does). I looked at historic movements to spot stocks with highest potential to do +/-5% move, and filter to keep those with minimum recovery periods. Recovery is basically when the stock price meets the price before the earnings release. I compiled all this into this dashboard where you can look at these numbers by symbol here: earnings-watcher.tech Here are some symbols with lowest/highest recovery periods: $MMI, $AMPH, $EVH, $SNPS: around 1 day $NEOG, $MAGS: around 40 days $ENG, $KODKL: around 100 days Happy to hear your thoughts and discuss the code if interested. Enjoy!   submitted by   /u/kribz666 [link]   [comments]
    [visit article]
  44. Projection vs recovery: Lenders may fall short of recovery target by more than Rs 50k cr in Q4 (30/03/2021 - Financial Express)
    Lenders may miss their recovery target by more than Rs 50,000 crore during the March quarter (Q4FY21) due to delay in the approval of resolution plans by bankruptcy courts.
    [visit article]
  45. Recovery period after stock movement following earnings release (03/06/2021 - Reddit Stock Market)
    Hi everyone, I was looking at stock movements after earnings release and I wanted to get a sense of how long it takes for the stock to recover after a movement the next day. I had a very simple strategy where I would buy a stock sometime before the date of earnings (to be calibrated also) and either sell it if it rises or hold on until it recovers (if it ever does). I looked at historic movements to spot stocks with highest potential to do +/-5% move, and filter to keep those with minimum recovery periods. Recovery is basically when the stock price meets the price before the earnings release. I compiled all this into this dashboard where you can look at these numbers by symbol here: earnings-watcher.tech Here are some symbols with lowest/highest recovery periods: $MMI, $AMPH, $EVH, $SNPS: around 1 day $NEOG, $BNGO, $MAGS: around 40 days $ENG, $KODKL: around 100 days Happy to hear your thoughts and discuss the code if interested. Enjoy!   submitted by   /u/kribz666 [link]   [comments]
    [visit article]
  46. Post weekly losses: Stocks make smart recovery, Sensex spurts 642 pts (19/03/2021 - Financial Express)
    Stocks opened lower, but saw a surge in buying during the second half of the trading session. What triggered buying was US bond yields coming off their highs.
    [visit article]
  47. S&P 500, Dow Hit Records as Red-Hot Recovery Boosts Reopening Stocks (05/04/2021 - Investing.com)

    [visit article]
  48. Need to Know: 7 reasons stocks are a buy even as bond yields climb, strategist says (22/02/2021 - Market Watch)
    Stocks are under pressure at the start of the week, as bond yields rise on hopes a global economic recovery is around the corner.
    [visit article]
  49. NewsWatch: 7 reasons stocks are a buy even as bond yields climb, strategist says (22/02/2021 - Market Watch)
    Stocks are under pressure at the start of the week, as bond yields rise on hopes a global economic recovery is around the corner.
    [visit article]

For more information mailto [email protected]. Disclaimer.