This portfolio manager draws on lessons from 2008 to find stocks that will survive a pandemic


Obviously, a US $ 2 trillion stimulus package was good news for the markets and hopefully for the economy, but it was yesterday.
Two-day winning streak for Wall Street and other global markets ends Thursday, before data could show that millions of Americans have applied for unemployment assistance due to vacation and layoffs coronavirus.

“The United States is still at the start of the infection curve, and the recent upturn in risk sentiment goes against these prospects. Markets will not stabilize unless the spread of the pandemic slows down in order to lift the bottlenecks, “said Eleanor Creagh, Australian market strategist at Saxo Bank. In other words, don’t look for more gatherings until this epidemic is under control.
Our call of the day comes from a portfolio manager who draws on what he learned from the 2008 financial crisis to navigate the delicate equity markets:
“Don’t try to call it low, but keep nibbling on great companies with great long-term prospects that will go well,” advises Sam Hendel, president and portfolio manager at Levin Easterly Capital, which has $ 5 billion. dollars under management. He worked in a hedge fund company during the financial crisis, but said Levin Easterly managed to operate according to his benchmarks – S&P
+ 1.15%

and the Russell 1000
+ 1.38%

– respecting these principles.
Hendel told MarketWatch that his business has been extremely active in the past few weeks, looking through market turmoil to find decent and discouraged businesses that will meet what consumers will need in the coming months – food, large tape and medical equipment. “We are trying to play defense and find defensive names that have offensive elements,” he said.
This leads him to the AbbVie pharmaceutical groups
+ 0.62%

and Pfizer
+ 0.16%

who “have been hit very hard and are very under-sold.” We believe that companies will be fairly stable, ”he said. Primo Water
+ 1.62%
which supplies water to offices and Nestlé in Switzerland

+ 3.39%
whose bottled water businesses are not too affected by the coronavirus epidemic, two other companies deserve to be detained, he said.
Add the multinational Tyson Foods to this group
+ 5.33%

and chemical group DuPont
+ 2.37%
due to its merger with International Flavors and Fragrances
+ 4.36%
a business that performed well during the 2008 crisis, he said. Comcast telecommunications groups

and AT&T
+ 1.10%

+ 1.10%

are two others he loves, and the laboratory maintenance company Quest Diagnostics

Hendel sees a “very chaotic and difficult year” ahead, but it’s also a good time for title pickers. “If we keep a cool head, we can assess what we think has earning power,” he said.

The market


and Nasdaq

futures are lower, and the same goes for European equities
while the Asian markets

had a day mainly out of order. Oil prices

and the dollar

grow lower.


Pimco tweeted this graph that shows what happens when we let “natural and human emotional responses to stressful markets” influence investment decisions:


Federal Reserve Chairman Jerome Powell spoke in a rare morning television interview, saying that the central bank “is working hard to support you now”.
The weekly number of Americans claiming unemployment benefits due to the coronavirus epidemic could reach a record 2.5 to 3.5 million when the figures are released before Wall Street opens. Gross domestic product for the fourth quarter and advanced merchandise trade are also forthcoming.
A professor from Hong Kong tells how life can return to normal in locked cities after 28 days.

and Walmart

Owner-owned Flipkart will find it difficult to deliver food and other goods to India while a strict three-week foreclosure is underway there.
S&P World Ratings Reduce
+ 8.88%

debt note for scrap.

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