Credit Suisse’s Jonathan Golub is urging investors to get clever with recovery plays.
He’s advocating a broad strategy that goes beyond reopening trades such as airlines and hotels.
“It could be metals and mining companies. It could be machinery and industrial names. Chemical names,” the firm’s chief U.S. equity strategist and head of quantitative research told CNBC’s “Trading Nation” on Monday. “That’s really where the market hasn’t yet played. That’s the stuff, I think, that’s on the come.”
Golub favors groups tied to all the stimulus versus pure reopening trades. He said he believes they’ll see benefits in spades when “the economy starts to really roar and move well.”
“I do like those kinds of trades where you buy airlines and cruise lines and restaurants and hotels. But that’s kind of the obvious trade, and that’s been a bit more picked over,” he said. “There’s probably less opportunity.”
Golub also expects shopping centers will see a boost as Covid-19 vaccines reach more people.
“Mall retailers should do really well as we reopen as opposed to consumer discretionary more broadly,” he said.
“This reopening of the economy is going to be much bigger than is being discounted in the market,” Golub said. “So for people who say, ‘How much of this good news is already in the market?’ Not nearly as much as you think.”