(MarketWatch) As we watch for further developments on the U.S.-Iran conflict that jolted investors awake a few days into 2020, it’s worth remembering that during this lengthy bull market, geopolitical worries have not pulled stocks off their upward path for too long.
That seemed to play out Monday, though we could always be looking at a “different-this-time” scenario. If the conflict doesn’t escalate, “markets should push higher with oil and gold prices moving lower,” South Africa-based Vestact Asset Management told clients on Tuesday.
Well before Iran-related headlines, strategists were heard advising investors to keep an eye on the global economy this year, as a healthy one is vital to keep markets rising.
That brings us to our call of the day, from strategists at investment bank Jefferies who are bullish on certain consumer-related companies.
Strategists Sean Darby and Steven DeSanctis predicted in a note that in 2020, bigger organizations will begin to take market share from smaller to medium-sized companies. That is, those with more size, scale and technology which can use that to their advantage to reach more customers.
Companies that have been investing in technology are able to watch digital engagement and consumer data closely, and have more marketing power, say Jefferies’ strategists.
So, what are the companies with scale that they like? In beauty products, they are fans of Ulta; for consumer packaged goods, Constellation Brands; among convenience stores, Casey’s General Stores; for gaming and lodging, Eldorado Resorts; among mass retailers, Walmart; for restaurants they like McDonald’s and Starbucks ; and they offer three in the hardline retail space — Home Depot, Lowe’s and Best Buy.
