Morgan Stanley strategist Teun Draaisma - who has called some of the recent market moves pretty well - has turned stock picker. He has gathered recommendations from his analyst colleagues and come up with his Fabulous 15.
He explains: "A bear market provides an opportunity to buy strong franchises at unusually low multiples, at some point. With the help of our analysts, we have identified 15 names of respectable franchises or industry leaders on unusually low multiples, which we think will provide good returns on a 2-5 year view, despite an uncertain 6-12 month view.
"The buy case for these stocks is not straightforward, of course -after all they are unusually cheap for a good reason, because there is a plausible case that the outlook for its business is particularly bad, due to the current macro environment. But if a long-lasting 1930s-style depression is avoided and the financial crisis improves in the next year or so, as we expect, these stocks are likely to give respectable returns on a 2-year+ view."
So without further ado, here are Draaisma's 15 to watch:
Carnival, Centrica, Credit Suisse, EDF, Hennes & Mauritz, EADS, Panalpina, Pearson, Richemont, Ryanair, SAP, Swiss Re, UPM, Whitbread, William Hill.
