Josh Brown– CNBC contributor, CEO of Ritholtz Wealth Management and author of the new book “How I Invest My Cash”– signed up with Benzinga’s PreMarket Prep reveal Friday.
Brown discussed his outlook for stocks in the coming months and prospective financial recovery plays in anticipation of coronavirus vaccines striking the market.
Brown’s Economic Recovery Plays: Brown stated he is bullish on stock prices in between now and year’s end, forecasting a melt-up in the S&P 500 in coming weeks.
” I hate saying it aloud due to the fact that if it doesn’t happen … you understand. But I’m beginning to believe that method,” he stated.
Brown owns reopening stocks like Starbucks Corporation (NASDAQ: SBUX) and Simon Residential Or Commercial Property Group Inc (NYSE: SPG).
” I remain in some business that truly require there to be a reopening to get back to their 2019 numbers, and it may take them 2 years to do it,” Brown said.
For now, Brown stated he’s placing in anticipation of how people will feel when they begin becoming aware of loved ones members getting the coronavirus vaccine in coming months.
Space Growth Story: Brown is bullish on another economic healing stock, Gap Inc (NYSE: GPS).
” Years and years and years and years without any progress, no momentum. Absolutely nothing excellent to speak about in the story. You’ve got this basic modification now– them improving at omnichannel, them getting better at the app, them improving the quality of the clothing and handling Lululemon,” he stated.
” This could become a growth stock and it’s costing 0.5 x sales, so you don’t even need to pay up for the advantage of making that bet.”
‘ Taking An L’ On Slack: Like any investor, Brown’s performance history is far from best. He acknowledge taking a loss on Slack Technologies Inc (NYSE: WORK) earlier this year.
” I believe one of the important things I didn’t depend on was just how much pressure Microsoft was going to be putting on Slack, practically as though they timed that pressure for the company’s IPO,” Brown stated.
Slack’s option to go public via a direct listing suggested that, unlike business that list traditionally, Slack was immediately exposed to insider selling pressure– and did not have the support of huge bank IPO underwriters like [h3] Gold [/h3] male Sachs (NYSE: GS) and Morgan Stanley (NYSE: MS), he said.
” I didn’t count on those two things, and it left me how important they may be.”
View to the full interview with Josh Brown in the clip listed below, or listen to the podcast here.
PreMarket Preparation is a day-to-day trading program hosted by prop trader Dennis Cock and previous floor trader Joel Elconin. You can watch PreMarket Prep live every day from 8-9 a.m. ET Benzinga’s YouTube channel, and the podcast is on Spotify, iTunes, Google Play, Soundcloud, Stitcher and Tunein.
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Date Company Action From To Nov 2020 Morgan Stanley Preserves Equal-Weight Oct 2020 Morgan Stanley Maintains Equal-Weight Oct 2020 MKM Partners Preserves Neutral
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