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Dec. 23, 2019, 9:59 a.m. EST · CORRECTED

This strategist picked two blockbuster stocks in 2019 — here’s what he likes for 2020

Critical information for the U.S. trading day

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By Barbara Kollmeyer, MarketWatch

A previous version of this story misstated the year in which strategist Andrew Milligan expects 5G-related assets to achieve popularity among investors. The story has been corrected.


Getty Images
Building 5G equipment in the U.S. state of Oregon.

The short holiday week begins with stocks hovering at all-time highs.

We’ll see if that turns into a good omen for the year to come but, for now, stocks are perking up, thanks to some positive chatter on the U.S.-China trade front. Note, trading volumes will likely start to thin out as investors begin their holiday vacations.

Onto our call of the day , from Standard Life Investments’s head of global strategy, Andrew Milligan, who earlier in the year gave this column two winning technology stock picks for 2019 — Microsoft /zigman2/quotes/207732364/composite MSFT +1.48% and Equinix /zigman2/quotes/208927761/composite EQIX -0.44% /zigman2/quotes/208927761/composite EQIX -0.44% —up 55% and 64%, respectively, year-to-date.

We’ve gone back to Milligan to get more equity ideas for the year ahead, and he tells us he still likes Microsoft. What else? Credit card providers Visa /zigman2/quotes/203660239/composite V +0.17% and Mastercard /zigman2/quotes/207581792/composite MA +0.45% , the former “a little more developed-market orientated and the latter a little more emerging-market orientated,” he says.

Milligan believes that 2020 will be the year investors decide it is time to buy some 5G assets — the next-generation wireless technology that is set to roll out in 2020. “In the world of 5G, semi and smartphones, then Marvell is worth examining,” he said. Chip maker Marvell Technology /zigman2/quotes/200053236/composite MRVL +0.76%  is among the companies with a foothold in that related 5G technology.

Read: Apple iPhone demand will soar in 2020 with launch of 5G, say Wedbush analysts

In the smaller-cap space, albeit riskier, says Milligan, he likes Five9 /zigman2/quotes/209043265/composite FIVN +0.73%  , which operates in the cloud software area.

As for this history-setting bull market, this strategist says it could carry on in the year ahead, but like others, he believes it needs to be fueled by stronger company profits. Still, there are other things to cheer, such as a trade truce between the U.S. and China, and central banks pulling back on the urge to tighten up policy, he says.

Read: S&P 500’s record-setting holiday run looks ready to trot into 2020, say analysts

The market

Dow /zigman2/quotes/210598065/realtime DJIA +1.20%  , S&P /zigman2/quotes/210599714/realtime SPX +0.83%   and Nasdaq /zigman2/quotes/210598365/realtime COMP +0.74% are rising, while European stocks /zigman2/quotes/210599654/delayed XX:SXXP -0.11% are mixed and Asian markets /zigman2/quotes/211618636/realtime XX:ADOW -0.78% were flat.

The chart

Our chart comes from CNN’s Fear & Greed Index, a gauge of investor emotions that has been hovering lately in the Extreme Greed region — a far cry from the Extreme Fear range of a year ago. And a month ago it showed investors as just plain greedy.


CNN
/zigman2/quotes/207732364/composite
US : U.S.: Nasdaq
$ 210.33
+3.07 +1.48%
Volume: 37.32M
Sept. 30, 2020 4:00p
P/E Ratio
36.60
Dividend Yield
1.06%
Market Cap
$1568.47 billion
Rev. per Employee
$902,473
loading...
/zigman2/quotes/208927761/composite
US : U.S.: Nasdaq
$ 760.13
-3.33 -0.44%
Volume: 490,539
Sept. 30, 2020 4:00p
P/E Ratio
132.12
Dividend Yield
1.40%
Market Cap
$67.61 billion
Rev. per Employee
$643,674
loading...
/zigman2/quotes/208927761/composite
US : U.S.: Nasdaq
$ 760.13
-3.33 -0.44%
Volume: 490,539
Sept. 30, 2020 4:00p
P/E Ratio
132.12
Dividend Yield
1.40%
Market Cap
$67.61 billion
Rev. per Employee
$643,674
loading...
/zigman2/quotes/203660239/composite
US : U.S.: NYSE
$ 199.78
+0.34 +0.17%
Volume: 6.77M
Sept. 30, 2020 4:00p
P/E Ratio
39.12
Dividend Yield
0.60%
Market Cap
$424.38 billion
Rev. per Employee
$1.25M
loading...
/zigman2/quotes/207581792/composite
US : U.S.: NYSE
$ 337.73
+1.50 +0.45%
Volume: 2.24M
Sept. 30, 2020 4:00p
P/E Ratio
46.93
Dividend Yield
0.47%
Market Cap
$336.59 billion
Rev. per Employee
$1.01M
loading...
/zigman2/quotes/200053236/composite
US : U.S.: Nasdaq
$ 39.70
+0.30 +0.76%
Volume: 6.66M
Sept. 30, 2020 4:00p
P/E Ratio
18.96
Dividend Yield
0.60%
Market Cap
$26.40 billion
Rev. per Employee
$764,415
loading...
/zigman2/quotes/209043265/composite
US : U.S.: Nasdaq
$ 129.68
+0.94 +0.73%
Volume: 1.03M
Sept. 30, 2020 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$8.41 billion
Rev. per Employee
$262,120
loading...
/zigman2/quotes/210598065/realtime
US : Dow Jones Global
27,781.70
+329.04 +1.20%
Volume: 450.74M
Sept. 30, 2020 4:08p
loading...
/zigman2/quotes/210599714/realtime
US : S&P US
3,363.00
+27.53 +0.83%
Volume: 2.60B
Sept. 30, 2020 4:08p
loading...
/zigman2/quotes/210598365/realtime
US : U.S.: Nasdaq
11,167.51
+82.26 +0.74%
Volume: 3.80M
Sept. 30, 2020 4:08p
loading...
/zigman2/quotes/210599654/delayed
XX : STOXX
361.09
-0.40 -0.11%
Volume: 0.00
Sept. 30, 2020 5:50p
loading...
/zigman2/quotes/211618636/realtime
XX : Dow Jones Indices
3,238.97
-25.50 -0.78%
Volume: 0.00
Sept. 30, 2020 1:08p
loading...
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