U.S. Wall Street Union Bank Ltd

The minutes of the Federal Reserve's December meeting showed that the tightening of the Federal Reserve's monetary policy may exceed expectations, causing stock market shocks in North America and Europe, and growth stocks and technology stocks suffered the most.
Strategists at Goldman Sachs and UBS global wealth management were not worried about the turmoil in global stock markets at the beginning of this year. They reiterated their bullish view and bet that the stock market can withstand the double test of higher interest rates and rising bond yields.
Zhitong finance app learned that Goldman Sachs strategists led by Cecilia Mariotti wrote in a research report released on Monday: "the selling range of some stocks with long-term excellent performance may be too exaggerated." "As the real rate of return is expected to be difficult to rise sharply, valuation is unlikely to become a constraint on the stock market."
Mark Haefele, chief investment officer of global wealth management, said in a report on Tuesday: "as the market adjusts to the Fed's hawkish stance and the latest wave of COVID-19's expectations, investors should be prepared to deal with volatility, but we expect the rebound to resume soon." "The normalization of Fed policy will not weaken the prospect of corporate profit growth, which is supported by consumer spending and convenient access to capital.
BlackRock Investment Research Center advised investors to use selling to increase the allocation of risky assets. They are convinced that the strong stance of the Federal Reserve will not fundamentally change the optimistic outlook of the stock market. JPMorgan strategists said on Monday that it was time to buy "excessively falling" stocks.
U.S. stock index futures rose on Tuesday, and the European benchmark stock index also rebounded. There are preliminary signs that the decline of stocks may ease. European stock markets seem to be full of optimism. Some big banks on Wall Street said that European stock prices are generally cheaper and less sensitive to interest rate hikes. In their view, European stocks are a potential safe haven in the environment of rising interest rates.
Bernstein strategists, led by Sarah McCarthy, wrote on Monday: "U.S. stocks are more vulnerable to the rise in U.S. bond yields because interest rate sensitive stocks account for a large proportion of U.S. stocks." the profit gap between the United States and Europe is narrowing. They suggested increasing stock positions and expressed a preference for European stock markets.
BNP Paribas strategists, including Ankit gheedia, also agreed: "we believe that earnings correction, bearish positions in European stock markets and attractive valuations may pave the way for a strong rebound in European stock markets in the coming months."
Goldman Sachs strategists said last week that although European stock markets have been underperforming US stock markets since the global financial crisis, the balance is now "slightly biased towards Europe". An important factor is fiscal policy. European spending will expand further, while U.S. financial support is expected to be reduced. Goldman Sachs also said that unlike US stocks, the valuation of European stocks does not seem to be particularly high compared with the past.
Goldman Sachs said that last year, the earnings per share of the European stock market was expected to be stronger than that of the U.S. market. Its strategists recommended European banks and energy stocks, and listed health care as the first choice for the undervalued and steady growth sector.