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Together with technology companies, managers advocate combining listed companies with a defensive profile, such as pharmaceuticals, which offer greater resistance in times of volatility, with firms more exposed to the cycle. Now that central banks are determined to raise rates, banks and insurers are brightening up. To take advantage of energy prices, experts choose the oil companies. The list is completed with values ​​from the defense sector, now that NATO members have agreed to raise their defense spending to 2% of GDP.

In a scenario of volatility in which the energy crisis threatens to continue, GVC Gaesco is committed to diversification. Along with companies with a marked cyclical profile, there are companies in which dividend yield plays a prominent role.

The first group includes listed companies such as IAG or CIE Automotive. Víctor Peiro, director of analysis at the firm, points out that in an environment in which the electrification of the automobile fleet is gaining momentum, the component manufacturer is well positioned for the transition from combustion cars to electric ones.

He also believes that IAG will be boosted by the recovery of air traffic, especially international travel. Without abandoning the cyclical component and at a time when central banks are accelerating the withdrawal of stimuli, Peiro chooses Unicaja to play the rate hike card.

Among listed companies with high dividend yields, Enagás stands out. GVC Gaesco seeks to combine sustainability (Veolia) with the benefits derived from the rise in crude oil (Galp). With Europe committed to increasing defense spending, Italy’s Leonardo, specializing in defense electronics and aeronautics, is an attractive option.

The strong punishment that risk assets have suffered due to fears of recession is seen by Mutuactivos as a good opportunity to enter companies that have good fundamentals at more attractive prices. The quality of the balance sheets, less exposure to the cycle and investment with long-term perspectives are the axes on which the manager’s portfolio is guided.

The Ence litter bin is one of the firms with the most weight in the portfolio. Ángel Fresnillo, director of equities at the manager, believes that the company will continue to benefit from the favorable environment for paper pulp prices. “It is a market with a growing structural demand and a more limited supply. Competitors with market power have marked price increases in China, which have been transferred to the European market”, he highlights.

Although the technology sector has been one of the hardest hit by rate hikes, the expert believes that Alphabet remains an interesting option due to its leadership position and double-digit revenue growth. With an eye on sustainability, the expert chooses Alstom. He thus points out that the railway is the most efficient mode of transport, with less consumption and more ecological that benefits from public policies. The list of values ​​is completed by Enel and Amadeus.

The instability experienced in recent weeks is just a sample of what awaits the markets in the second half of the year. To deal with shocks, Link Securities overweight defensive sectors, such as healthcare (Bayer and Sanofi), telecommunications (Deutsche Telekom) and utilities, including renewable energies (RWE and Acciona Energy) . The common feature of all of them is that they have a very inelastic demand, as they are all essential businesses. Their activities tend to maintain a better relative performance in periods of low growth.

Although the priority objective is to shield itself from volatility, the firm does not want to miss the opportunity to take advantage of the trends prevailing in the market. To play the rate hike card head of analysis at the firm chooses Santander. Even if the banking sector is underweight, monetary normalization will serve to boost very depressed margins. With an eye on the greater defense spending that Europe is preparing, the expert selects the German Rheinmetall. The selection is completed by firms that can take advantage of the high prices of crude oil, such as Repsol and TotalEnergies.

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