Don’t worry about the election—look for strong stocks, says this investor. Here are his 3 picks
Recent political tensions and election-related noise have caused volatility in markets beyond investor control. When investing in such times, Kim Forrest, chief investment officer at Bokeh Capital Partners, has some principles he follows to ensure a successful portfolio. During an interview with CNBC’s “The Exchange” on Monday, Forrest advised investors to look for companies that are consistently outperforming their peers. He also has names with strong balance sheets. In addition, he said that looking for companies that focus on marketing products, or keeping the needs of customers is important to ensure that they are maintained. These factors combine to ensure that the company can outperform its peers, according to Forrest. “That’s what we’re looking for — not who’s going to be president and then we have to invest,” Forrest told CNBC’s “The Exchange” on Monday. Stock selection The investor named three companies that he believed met his criteria: Exxon Mobil, artificial intelligence play Micron Technology and Urban Outfitters. Exxon Mobil doesn’t just “get oil out of the ground,” it also has a chemical industry and operates around the world. This ensures diversity both by product and country, according to Forrest. Regarding Micron Technology, Forrest said he “believes in AI.” Micron makes NAND flash memory that is critical to providing the information needed to develop AI, according to the investor. As for Urban Outfitters, Forrest said that, although its unknown brand is struggling, there is continued strength in all other brands – Free People and Anthropologie. Urban Outfitter’s newly appointed president should translate to younger customers in the current quarter, Forrest said. “We think this company is a great seller, and it can do it [it] again and again, “said Forrest. This company has been operating for almost 50 years, which gives it a history of working in different consumer and economic environments. “This company knows that the consumer is changing, and they seem to be able to anticipate those changes. and keep delivering,” Forrest said.
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