Consider Buying These Growth Stocks as Real Rates Remain Negative – Citi
2022.04.05 16:16
​​Consider Buying These Growth Stocks as Real Rates Remain Negative – Citi
Citi strategist Chris Montagu expects real rates to remain negative going forward, which should provide a basis for growth stocks to outperform going forward.
However, the rising geopolitical risks and deteriorating fundamentals mean that investors should focus on the Low Risk/High Quality end of the Growth spectrum of stocks, Montagu said in a client note sent today.
Among companies that are high Growth or good Value, those that are relatively Low Risk have outperformed in March. This effect is seen in both US and European equities, but stronger for Value than Growth. This shows investors have been more selective with Value exposure in March, Montagu wrote.
Citi expects IT and Health Care to benefit the most due to negative yields and defensive characteristics, respectively.
Some growth stocks that meet Citi’s criteria (Low Risk/High Quality Growth) are: Microsoft (NASDAQ:MSFT), ServiceNow (NYSE:NOW), Micron (NASDAQ:MU), Snowflake (NYSE:SNOW), Marvell (NASDAQ:MRVL), Robinhood (NASDAQ:HOOD), SoFi (NASDAQ:SOFI), etc.
By Senad Karaahmetovic
