Posted by Fabien "The Efficient Capital Allocater" > 2020-11-16 20:14 | Report Abuse

Since last week, we have witnessed massive rotation into value stocks. funds rebalanced their portfolio from stay at home stocks into stocks that linked to economic recovery, the airlines, banks, etc.

Treasury yields have rallied to multi-month highs. the 10YR is approaching 1%.

While positive vaccine news a boost to sentiment, clearly we are in a mini upcycle, I am more wary on the workings of mean reversion.

The path to recovery is much clearer since the onset of the pandemic, the pace is still very much dependent on the successful containment and commercialization of vaccine.

Short term fluctuations aside, I still believe glove stocks a must have in your portfolio, especially so given its prevailing valuations. Post-covid, glove demand is expected to expand at least 20-25% from the usual 8-10% annual growth rate.

Of course, diversification is one free lunch available. When the global economy does recover next year, consumption to eventually normalise, my portfolio of energy stocks would benefit from the rebound in oil price.

Posted by CCCL > 2020-11-16 21:30 | Report Abuse

Gloves stocks aka No-Brainer stocks. Any Ah Kau or Ah Mau can trade now. So any sensitive news, they run helter-skelter...

Posted by cngi > 2020-11-16 21:42 | Report Abuse

fund direction now is towards covid recovery related stock. Glove undoubtedly is good stock to hold, but short term not to against the flow of fund..

Posted by CCCL > 2020-11-16 21:52 | Report Abuse

Don’t falls into a die-hard fan syndrome..narrowing your investment horizon.