Stock markets are expected to remain upbeat in the second half of the year on strong corporate earnings and a continued economic recovery. Given this backdrop, we believe fundamentally sound companies Sony (NYSE:SONY), STMicroelectronics (STM), and SS&C Technologies (SSNC), which are currently underperforming the broader market, are poised to bounce back. Read on.Fueled by a super-charged economic recovery, low interest rates and robust corporate earnings, stock markets are expected to attain record highs in the second half of 2021. Ethan Harris, head of global economics research at Bank of America Merrill Lynch (NYSE:BAC) Global Research, recently stated that Federal Reserve Chair Jerome Powell “has done a good job of calming the waves in the bond market, so this is Goldilocks for equities.”
With the Fed targeting an average inflation rate range around 2%, investors are optimistic about the potential for the stock markets’ to have a solid run in the coming months.
While Sony Group Corporation (SONY), STMicroelectronics N.V (STM), and SS&C Technologies Holdings, Inc. (SSNC) are underperforming the SPDR S&P 500 ETF Trust (SPY), we think they are well positioned to bounce back in the near term owing to their strong fundamentals and financials, and bullish investor sentiment. So, these stocks could be solid bets now.