With the arrival of a new year, and in the midst of a pandemic that seems to have no end, some experts believe that it continues to be a good time to invest. Fear of the future and generalized uncertainty are causing a halt in investment movements, and for this reason it is now more important than ever to achieve the long-awaited economic boost. The manager GVC Gaesco consider that there are certain high interest sectors to deposit our money and get a good return in 2021.
For the manager, one of the most attractive assets at the moment is bet on cheap quotes, specifically in value, as a consequence of the coronavirus crisis. In the framework of the webinar 'The Post-Coronavirus Markets 2021', GVC experts have assessed that investment should be made in companies that have cut their costs significantly and with cheap long-term financing.
The most positive estimates and decision-making will depend, to a large extent, on the vaccination campaign, these strategists say. And it is that for GVC, the key to recover the turnover of the companies and the valuations of the companies in the segment value resides in the speed of vaccination of the first 25% of the population which is the percentage on which the virus affects the most, they say in reference to the elderly and health workers.
In this regard, Jaume Puig, CEO and CIO of GVC Gaesco Gestión, explains that "there are investors who have confused the economy of confinement with the economy of the future, as if the future consisted of staying at home". "The investor who waited to invest until the first of the vaccines was announced blew a great investment opportunity, in the same way that whoever waits for the vaccines to release the medical assistance pressure will also do so ", Puig adds.
Likewise, the firm values that it is a good time to invest in companies that have cut your costs, achieving "in three months what they would have done in three years", securing financing "cheap" for several years.
According to Puig, this is a factor of vital importance, since "they will be protected for a long time against hypothetical interest rate hikes". GVC estimates suggest that, in a period of between three and five years, the sharp increase in public debt" will have a price, which will be the rise in the inflation rate. "
Regarding inflation, experts from GVC Gaesco Gestión predict that when the rate normalizes in the coming years, central banks it will be difficult for them to stop raising interest rates in the period 2023-2025.
"And once interest rates rise, accounting businesses, such as fixed income or real estate, will be harmed", clarifies Puig, who adds that in this scenario "the great risk of the current investor is that of requiring too low a cost of capital or WACC".
Some managers of the firm have valued the most attractive investments heading into this year. Xavier Cebrián explained the company's example JC Decaux, which with its advertising media is seriously affected in some sectors by Covid-19, such as airports. For his part, Josep Monsó has reviewed the investment possibilities in companies in the transport and the Logistics of LNG (Liquefied Natural Gas) for this 2021.
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