Jonathan Golub, chief U.S. market strategist at UBS AG, said stocks of consumer-focused companies are becoming attractive as they manage costs better and lower gasoline prices encourage Americans to spend.
“Consumer companies -- which typically haven’t had the same kind of fiscal discipline that industrials and energy and materials companies have -- are doing a brilliant job,” Golub said in a Bloomberg Radio interview today with Tom Keene. “It is a slower growth economic environment so companies are going to be forced to really look at the bottom line much more aggressively.”
Golub said while U.S. economic data continue to beat forecasts, Europe’s debt crisis is still a cause for concern for financial, energy and commodities stocks.
“I would rather be positively exposed to the economy in technology, in consumer discretionary, even maybe in industrial companies which are a play on the success of the economy but don’t necessarily have the same stock-price exposure to those macro concerns,” he said. “The one thing I can be certain of is that some point between now and the end of the year these issues are going to rise up again and they’re going to be disruptive.”
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