When the economy rebounds, where's your portfolio going to be? UBS says that's a question to answer right now.
It's an update on an old concept. UBS has released what it calls its "'New' Nifty Fifty," a list of 50 companies from around the world that can use today's troubling market conditions to position themselves to thrive when the economy rebounds.
The original UBS "Nifty Fifty" dates back to the 1960s and 1970s. It was a list of 50 securities considered to be solid "buy and hold" stocks, stocks viewed as extremely stable, even over long periods of time.
In compiling its new list, UBS took four key factors into consideration:
- Large capitalization
- Global exposure
- Strong product offering
- Low operating and financial leverage
UBS says companies that compare favorably to their competitors on these four points should be in good position to gain market share, and to have more to gain when demand picks up again.