In the first nine months of the current fiscal year, the deficit reached a staggering $2.7 trillion. Almost everyone agrees that during the global COVID-19 epidemic, apart from massive federal spending to keep the economy running, there is no doubt that the alternative will be worse.

Members of the Barron Weekly Round Table praised the Federal Reserve and the federal government for injecting much-needed money into the financial system this year. To be sure, so many stimulus measures have distorted asset prices and raised the stock index to ridiculously high levels, butOur 10 round table members see no reason to fight against the Fed.。

They believe that one day the economy will recover from the blow, companies will turn losses and profits again, and stocks will be priced according to traditional measures rather than unsustainable and untenable growth expectations. In the face of the deadly and destructive novel coronavirus, the research and development of safe and effective drugs and vaccines will greatly help this day come as soon as possible.

Although members of the round table admitted in a recent telephone follow-up interview that they did not like the entire stock market, they believed that as the S & P 500 and the Nasdaq composite index soared, there were many attractions among the underperforming stocks.Today, most of their favorite stocks come from technology, telecoms and health care.

Some of these stocks have benefited from certain trends accelerated by the epidemic, such as the growth of e-commerce and home work, while others will benefit from the economic recovery later this year (or more likely next year). Most importantly, these experts are looking for companies that take advantage of the current chaos to consolidate and improve their businesses in order to become stronger after the crisis.

Here are the latest stock (or fund) choices of 10 round table members and an analysis of the market.

01

Gabelle believes that the US economy may show a W-shaped recovery, but the second half is in the shape of an oblique hook, and growth will begin to resume in 2021.

He expects the second wave of recovery to begin in September or October. On the corporate side, he believes revenues will improve further by 2021, but gross profit margins will narrow. He believes that the market has so far underestimated the improvement in the economy. The yield on the 10-year treasury bond is about 0.60%, which underpins stock market valuations, but he is not sure whether interest rates will remain that low.

02

Joseph Cohen believes that this year's stock market rebound has been surprising, thanks to the Fed's monetary stimulus.

She points out that the S & P 500 has priced in expectations that the situation will improve by the end of 2021, and that there is no room for error in either stocks or fixed income. Goldman Sachs Group set a six-month target of 3000 for the S & P 500 and a 12-month target of 3100. That means the S & P 500 has been fluctuating near fair value. Goldman Sachs Group's global team believes that China will perform relatively well in the short term, with Europe and Japan likely to outperform the S & P in the next six to 12 months.

03

James Anderson believes that interest rates are likely to remain low for a long time.

Second, something really important happened in the first quarter of this year that will have a longer-term impact than the global epidemic: we have reached a turning point on the road to ending carbon emissions. He pointed out that in the first quarter of this year, more than 50% of Germany's electricity came from renewable energy. Tesla, Inc. Model 3 is the top-selling car in California. The implications of these events will be profound for stock markets and the global economy in the coming decades.

04

Mayer Whitmore is optimistic about the vaccine candidates and notes that the mortality rate of COVID-19 cases has declined.

She believes the situation will return to normal in the coming year or so. On the other hand, expectations of potential improvement have been largely reflected in the stock market, with fewer and fewer cheap stocks.

05

Rupert J. Bansari believes that there is a separation between the plight of economic fundamentals and the prosperity of Wall Street, and Wall Street expectations will have to be adjusted according to fundamentals, which means that the stock market will usher in a big correction.

She also believes that while the Fed has avoided difficulties, it has also subverted price discovery, and that the market will eventually expose the Fed. She expects a reality test this fall as companies realize that the recession will be longer and deeper than they thought. This will lead to a reset of earnings expectations and stock valuations.

06

Sonar Desai believes that the market is no longer driven by the economy, but by policy action.

She believes that in this particular crisis, the Fed has done all the right things and that investors should not confront the Fed this year. On the other hand, due to the lack of understanding of the underlying economic situation, valuations are impossible to detect, and there are a lot of price distortions. Desai also insisted on bullish on gold. She believes that inflation may be a problem at some point, given the loosening of monetary and fiscal policy. Gold is a good hedge against current risks and inflation expectations.

07

Todd Ellstein believes that the epidemic has accelerated the process of technological subversion.

It has changed the way companies approach customers, handle supply chains, manage employees and build brands. From an investment point of view, it widens the gap between growth stocks and value stocks. Economically sensitive companies have been hit. The Fed's cut of interest rates to near zero is good for growth companies.

08

Scott Blake believes that the S & P 500 is valued at a high level, with a forward price-to-earnings ratio of 29 times.

In the NASDAQ, he believes that some stocks are speculative, such as Tesla, Inc., Spotify, Netflix Inc and so on. In Blake's view, money will continue to pour into the stock market because interest rates are very low and there is no real competition from assets other than stocks. She also believes that through monetary stimulus, the Fed has done an excellent job of keeping the economy running.

09

William Prester believes that monetary and fiscal stimulus measures have eased the pressure on the stock market, but it is not clear what the economic trend will be in a year or two, and the stock market is likely to be approaching its peak.

On the other hand, science and technology will eventually put an end to the social and economic impact of the epidemic. Technology companies will be the winners of investment for a long time to come. Stocks that outperform the market will continue to emerge in the areas of technology, health care and communications. Stocks such as Facebook Inc, Alphabet, Amazon.Com Inc and Microsoft Corp (Microsoft) may have valuation problems, but the cash flow of these companies will continue to grow.

10

Henry Ellenbogen believes that the question now is when-not "whether"-we are coming out of this health crisis.

For technology companies, Ellenbogen believes that this is already an area with a lot of innovation, and the global policy of home isolation has largely accelerated the process of e-commerce and corporate digitization for three to five years. Therefore, it is logical for the Nasdaq index to lead the stock market higher.