The definitive list of the best investing stories Business Insider published in May, from top-tier trader recommendations to stock picks.
May was a confusing month for markets. Many observers scratched their heads as major indexes continued their steady chug higher, seemingly oblivious to the economic wreckage left by coronavirus.
Whether it was the prospect of further stimulus or the apparent progress of a COVID-19 vaccine, investors reacted positively to any encouraging signs of a swift economic reopening.
Then the last few days of the month turned that all on its head.
As President Donald Trump reignited tensions with China, mass protests occurred all across the US as millions of Americans reacted to the death of George Floyd. Both served to destabilize the investing landscape, leaving participants wondering what's next for a market that's become quite vulnerable to sudden shocks.
To that end, the Investing team at Business Insider is constantly on the hunt for clarity and expert tips to help traders navigate these unprecedented times. Divided into three distinct areas, here are some of the team's top findings from May.
- John Allen, the chief investment officer of the wealth-management firm Aspiriant, says investors can design a sturdy, low-risk portfolio using just 7 ETFs. He details exactly which ones he's talking about, and how they should fit together.
- Billionaire investor Mario Gabelli's flagship fund has delivered a 3,082% return since its inception. In an exclusive interview, the Gamco chairman shared the investing themes he's tracking, including what he's doing in media, healthcare, and utilities. He even went as far as to name 13 stocks he loves.
- David Dudding's mutual fund has consistently dominated peers, and it's one of the best global stock funds in 2020. He detailed for us the major themes in his portfolio, what he's done since the pandemic started, and his top picks for the future.
Commentary/outlooks from top-tier investors and Wall Street firms
- Business Insider surveyed 10 fund and portfolio managers on various aspects of their strategies in a post-pandemic world. Each one shared their favorite hidden gems in the market, as well as the contrarian trades they're making.
- Stanley Druckenmiller, Howard Marks, and other investing legends have recently voiced concern about the pace of the stock market's rally during a devastating economic crisis. Mutual-fund managers are also wary. We break down recent commentary around what some see as a "fantasy" rally.
- The attractiveness of US assets relative to the rest of the world is brewing a bubble in the stock market, according to equity-derivatives strategists at Bank of America. They formulated a cheap strategy designed to profit from limited gains in some of the worst-performing stocks.
- Bill Miller and 5 longtime value investors share 10 stock picks they're betting on right now — and explain why these are the best companies for the crisis recovery.
- Goldman Sachs strategist Ben Snider compiled a list of 21 undervalued stocks that are generating above-average returns on capital. Though these stocks are trading cheaply, he says they offer strong balance sheets and above-average EPS growth.
- Multiple technology companies have become oversold relative to their prospects for growing profits, according to Credit Suisse. The firm identified 13 tech stocks that investors could profit from as their depressed prices catch up to lofty expectations for earnings.