Samsung Securities, "Focus on Overseas Stocks 'V·A·C·C·I·N·E & H·O·P·E' This Year"

In the Year of the Ox, Foreign Stocks Keywords Highlighted by Seohak Ants: 'V·A·C·C·I·N·E' & 'H·O·P·E' Presented
Recommended Stock Keywords: (V)isa, (A)pple, (C)TG Duty Free, (C)ATL, (I)ntuitive Surgical, (N)vidia, T(E)sla & (H)ermes, Ni(O), (P)aypal, Solar(E)dge

[Asia Economy Reporter Song Hwajeong] Samsung Securities presented 'V·A·C·C·I·N·E' & 'H·O·P·E' as notable overseas stock keywords for 2021.

On the 6th, Samsung Securities proposed 11 global stocks as recommended picks for the Year of the Ox. These stocks include Visa, Apple, China Duty Free Group (CTG Duty Free), Ningde Times (CATL), Intuitive Surgical, Nvidia, Tesla, Herm?s, Nio, PayPal, and SolarEdge. The keywords V·A·C·C·I·N·E & H·O·P·E are acronyms derived from the first letters of these 11 stocks expected to continue their strong momentum in the overseas stock market in 2021.

These companies attracted investor attention with an average stock price increase of 268% last year and mainly consist of U.S. and Chinese companies, known as the G2 (U.S. and China).

The characteristic of these stocks is that they have differentiated stories that can stand out in the liquidity-driven market rapidly expanded due to the novel coronavirus infection (COVID-19).

Jang Hyoseon, head of Samsung Securities' Global Stock Team, stated, “With the prospect of a K-shaped recovery emerging due to COVID-19, the dominance of companies leading with innovation and brand power is likely to continue. It is important to select transformer-like stocks that continuously evolve and take market leadership amid the megatrend of digital transformation.”

Samsung Securities not only recommended overseas stocks but also presented the major theme of global stock investment as a shift to the 'Era of Fiscal Dominance,' expecting to escape the decline in aggregate demand and potential growth caused by fiscal tightening resulting from the previous reliance solely on monetary policy (Monetary Dominance) for economic stimulus.

Samsung Securities emphasized that the most notable aspect of the era of fiscal dominance is aggressive and proactive fiscal expansion policies comparable to wartime measures, such as expanded unemployment benefits, emergency disaster relief payments, and guarantees for corporate loans. They forecast that the need for economic stimulus through such active fiscal expansion will continue at least until 2025 or beyond.

Yoon Seokmo, head of Samsung Securities Research Center, stressed, “Building a global portfolio including overseas stocks has now become one of the basic common senses of stock investment. It is more important than ever to focus on major countries' policies and market trend changes to include beneficiary stocks.”

This content was produced with the assistance of AI translation services.