Today we are watching…
1. Simon Property Group (#simonp)
The largest landlord in the United States isn’t going to wait around any longer; its brick-and-mortar clients need to reopen fast if they’re to meet their rental commitments. Simon Property Group is announcing plans to get more than half its malls reopened this week. There are investors taking this as the first catalyst in retail’s probably corona-recovery, as stores that reopen now will be able to claim vacant market share by firms which are not ready. However, the financially-motivated decision isn’t without criticism from some loyal customers, and not every state will allow this plan to go ahead. These are the first innings of something, pay attention.
2. Tencent (#10cent)
JP Morgan’s Asia Growth Fund throws caution to the wind and has historically notched some of the biggest gains in hyper-growth East Asia. Its managers are positioning themselves for growth in one particular area over the next three years, and that’s large-cap tech. Companies like Tencent, Alibaba, Samsung, and JD.com, represents the fund’s largest positions. “The technology trends that existed prior to coronavirus have been accelerated,” said Mark Davids, portfolio manager. “We’re still finding these tech names to offer 15-20% annualized with a five-year view.” Not bad!