Tags: byron wien | buy | distressed | shares | airlines | hotels | energy

Byron Wien: Buy Distressed Shares in Airlines, Hotels, Energy and Dump Tech

Byron Wien: Buy Distressed Shares in Airlines, Hotels, Energy and Dump Tech

By    |   Monday, 15 June 2020 05:32 PM

Investment guru Byron Wien urged savvy investors to focus on distressed areas of the market, while shedding tech stocks whose valuations have become stretched.

 “My view is you should step in and buy in this market, but you should shop in the distressed areas: energy, hospitality, airlines and housing,” the vice chairman of Blackstone Private Wealth Solutions Group said on CNBC.

“Those areas I think are attractive. You should be buying the beaten-down stocks, not the favorites that are selling at all-time highs.”

Wien has traditionally been a growth stock investor, CNBC explained, but Wien said that valuations of some of the largest tech companies, including Facebook, Alphabet, Netflix, Apple and Amazon have become too rich.

“I think those valuations are very full, and so therefore I’m shopping among some of the distressed sectors,” he said.

However, it just may pay off to make your own picks and ignore the gurus, Bloomberg reported.

Stocks preferred by retail investors are handily beating those liked by hedge funds and mutual funds, according to Goldman Sachs Group Inc.

A portfolio of stocks popular among individuals has surged by 61% since the bear market trough compared with a gain of 45% for both hedge fund and mutual fund favorites and a 36% rise in the S&P 500 Index, strategists led by David Kostin wrote in a note June 12. And investors should consider value shares, they said.

“The narrative of Main Street weakness versus Wall Street asset inflation is misleading,” the strategists said. “The surge in retail trading activity has amplified the market rotation toward cyclicals and value stocks.”

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Investment guru Byron Wien urged savvy investors to focus on distressed areas of the market, while shedding tech stocks whose valuations have become stretched.
byron wien, buy, distressed, shares, airlines, hotels, energy, tech
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2020-32-15
Monday, 15 June 2020 05:32 PM
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