Wells Fargo Bank

Chris Harvey, head of equity strategy at securities, said he was building a large part of his investment strategy on this year’s consumer share buybacks.


From hotels to casinos and restaurants, many of the successful deals this year will involve spending outside the home, Harvey said. “We haven’t seen consumer stocks come out of recession so strongly for a long time,” he said


Harvey, a member of the V-shaped economic recovery camp, thinks it’s time to increase his exposure to consumer stocks. He believes that the acceleration of new crown vaccination will help boost consumer stocks. Last month, he upgraded the sector from “neutral” to “super”.


“Consumers will spend a lot of money on services,” Harvey said. “So far this year and in the past 12 months, many of these stocks have underperformed other cyclically traded stocks.”


Harvey believes that the overall performance of US stocks this year will not be as good as last year. He set the S & P 500’s year-end target at 3850, which means it will be down 1% from Wednesday’s close.


“You closed your eyes 12 months ago and woke up to see the stock market go up,” Harvey said. But we don’t think that will happen in the next 12 months. “

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