December 7, 2020
Greg Hahn, CIO and President at Winthrop, addresses key issues facing the market in a recent interview with Elena Casas-Montanez at Reuter’s. As the year comes to an end, we are tracking the trade tensions with China, a second stimulus package, and when to invest in Covid-affected industries.
Elena: For more on how markets are moving, I’m now joined by Greg Hahn, CIO of Winthrop Capital Management. Greg, thank you for joining us. Let’s start with China, which seems like a more tempting place to invest than ever after its recovering so well from the pandemic, but should investors be worried about the trade tensions?
Greg: Hi Elena. Yeah, I think near term we need to worry about trade tensions, but this is the [Trump] Administration doing what they do. I think a transition into a Biden Administration is an opportunity to do a reset. I don’t think it’s going to happen right away. But China is a really important market for U.S. companies, and I think we’ll have some pressure to continue to trade with China.
Elena: Our other big headline in the U.S. today is stimulus, of course. How badly do markets need a package to be passed right now?
Greg: We were in the camp this second half of the year that we needed a second round of stimulus. We still believe that’s the case, but it doesn’t have to be a broad based stimulus – it can be focused. There are parts of the economy, which include the airlines, restaurants, entertainment, gaming, that have been severely impacted and need some fiscal support. Cities, local governments, and municipalities are going to need support as well.
Elena: Is it time, do you think, to start putting money back into airlines, travel stocks, and other industries that have been hard hit this year?
Greg: The answer is yes. You can’t time the market, but we do believe in buying the Covid-affected and recovery areas. The frustration, Elena, is that there are elevated prices in some cases. So, if investors think that they are getting something at a discount, they really need to do their homework.
Elena: Thanks so much for joining us, Greg Hahn, CIO of Winthrop Capital Management.
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