With the stock market hitting record highs this year, investors are looking to grab every opportunity to capitalize on the momentum. Given the solid progress on the vaccination front and continuing policy support to aid economic recovery, the market is expected to remain resilient in the coming months. Therefore, we think quality high-beta stocks Moderna (NASDAQ:MRNA), Microchip Technology (MCHP), Sasol Limited (NYSE:SSL), and OneWater Marine (NASDAQ:ONEW) could be great picks now. Let’s discuss these names.The stock market has experienced an unabated rally so far this year, fueled by a torrent of monetary and fiscal stimulus and strong corporate earnings. The S&P 500 has climbed 20%, registering seven straight months of gains and more than 50 highs along the way.
Though investors are concerned about the economic impact of the COVID-19 Delta variant, if vaccines remain effective in minimizing severe cases that lead to hospitalizations and deaths, the adverse effects of the current COVID-19 surge are expected to be limited. According to The Conference Board’s Economic Forecast, the economy is expected to witness a steady rebound in the second half of the year on the back of improving consumer spending, a boost in inventories as the holiday period approaches, and continued government support. Furthermore, UBS boosted its year-end S&P 500 forecast to 4650, backed by solid growth activity, solid earnings momentum, and higher fiscal spending.
Given this backdrop, we think it could be wise to bet on high-beta stocks because they tend to perform better than the benchmark indexes in a bull market. As such, quality high-beta stocks Moderna Inc. (MRNA), Microchip Technology Incorporated (NASDAQ:MCHP), Sasol Limited (SSL), and OneWater Marine Inc. (ONEW) could be ideal bets to cash in on the bullish market trend.