Powell’s’blackout’, failed to appease the market… Careful stock selection for next week
[아시아경제 이선애 기자] Fed chairman Jerome Powell failed to appease the market, and investment advice came out next week that the domestic stock market needs to be cautious about choosing industries and stocks.
According to SK Securities on the 6th, despite Chairman Powell’s efforts, US Treasury yields are rarely stable. Concerns are still high that the Fed’s rate hike will accelerate as expectations for the resumption of economic activities have risen due to the increased spread of the Corona 19 vaccine. In addition, inflation pressures have increased as the US$1.9 trillion stimulus package passed through the House of Representatives. News has been reported that the Fed is reviewing Operation Twist (sell short-term bonds and buy long-term bonds while maintaining total amount) and YCC (bond yield curve management) to cope with unstable Treasury yields, but the market is still unstable. The Fed and Chairman Powell’s response to data is inevitable.
SK Securities researcher Han Dae-hoon said, “Before the Federal Open Market Committee (FOMC) to be held from March 16 to 17, the FOMC meeting has entered a black-out period where Fed officials cannot speak related to monetary policy Until then, the unstable market situation has no choice but to continue,” he stressed.
For the time being, volatility is expected to continue to increase. Interest in the March FOMC will also grow. As volatility is expected to increase, it is now really important to select the sector and stock. And the basis for that is, of course, performance.
One researcher said, “Expectations for the resumption of economic activity have risen due to the expansion of vaccines, and as inflation pressures are increasing, attention is being drawn to economically sensitive stocks. Among the economically sensitive stocks, it is important to make a discriminatory choice for sectors and stocks that support performance. He emphasized. Among the economically sensitive stocks, display, transportation, steel, chemicals, IT home appliances, and semiconductors were selected as the sectors whose earnings estimates are continuing to increase.
Reporter Lee Seon-ae [email protected]