Investors will need to be stock pickers in 2021, BTIG says and here are the firm's favorites

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Uber app on a smart phone.
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2021 will be a stock pickers market, according to BTIG, with names like Uber and Simon Property Group expected to outperform.

As Covid-19 headwinds abate, investors are sitting on piles of cash with unprecedented monetary and fiscal stimulus, with rates promised to stay low. BTIG expects this climate to drive a "redistribution of wealth in the markets," with a special spotlight on growth versus value. The Wall Street firm said this shift will ultimately drive further equity upside, while at the same time contributing to volatility during the year.

"With stock correlations at a post-pandemic low and valuations in many areas arguably extended, we take an optimistic but selective approach over the next year," BTIG's chief equity and derivatives strategist, Julian Emanuel, told clients.

"Even as overarching rotation to Value from Growth unfolds, not all Value will be treated equally," he added. "We prefer Cyclicals over rate-sensitive Defensives, and within those, companies that avoided adding substantial leverage to weather the pandemic."

With stock picking in mind, BTIG compiled a list of its highest conviction investment ideas over the next 12 months, starting in the first half of 2021. The list is comprised of both large-cap and small-cap equities. BTIG has a buy rating on all the listed stocks.

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