Chill out, dude.
It doesn’t think you should be, either.
The recent selloff is, in our view, a reaction to China’s market volatility and currency devaluation (amid struggles for emerging markets more generally), oil prices’ drop to multi-year lows, and worries of potential Federal Reserve (Fed) interest rate increases. Regarding potential rate increases, we believe recent events may make the Fed less likely to take action in the coming weeks. We believe that none of these factors are likely to derail the long-term global economic expansion.
And now that your mind is completely at ease, here are a few bargains you might want to throw some money at.
For now the best strategy for U.S. consumers, the bank advised, is to hold companies with high domestic revenues and to avoid companies with high foreign sales. The best industries overall are financials and information technology. The diciest: energy, materials, utilities and consumer staples.