HALISTER1: Deutsche Strategist Sees Bond Substitute ‘Hurricane’ Opportunity

Deutsche Strategist Sees Bond Substitute ‘Hurricane’ Opportunity

(Bloomberg) -- Deutsche Bank Chief U.S. Equity Strategist David Bianco recommends buying utilities and telecom after recent weakness on fears of rising interest rates.
  • Utilities are favored bond substitute followed by telecom (raised to overweight), given dividend coverage, followed by REITs and consumer staples
  • Recommends including some big banks in portfolio overweight utilities and telecom as hedge on rates
  • Expects Dec. Fed hike and 10-year treasury yields to slowly climb to 2% in 2017
  • Skeptical of recent oil rally, says energy stocks priced for $65-$70/bbl in 2018
  • NOTE: Sept. 19, U.S. Election Plays Outlined in Deutsche Bank Strategy Note
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

Tickers
XTL US (SPDR S&P Telecom ETF)
XLU US (Utilities Select Sector SPDR Fund)

People
David Bianco (Deutsche Bank AG)

To de-activate this alert, click here

UUID: 7947283