Deutsche Bank recommends investing in emerging markets, especially those in Asia that will benefit the most from China's early recovery, as well as the actions of large US technology companies in its strategy for 2021, presented this Thursday.

The head of equities of the investment center of Deutsche Bank in Spain, Diego Jiménez-Albarracín, considers "very positive" the outlook for the stock markets of Taiwan, Singapore, Malaysia and, in general, the regional trading partners of China, which are will benefit first from the coronavirus recovery.

Deutsche Bank believes emerging market companies could be of interest because of lower duration risk, more granular indices, which facilitate diversification, and companies' ability to benefit from a revival in global trade and regional trade pacts, plus obviously in Asia.

To a lesser extent, the vision is also good for US equities. Analysts at the German bank believe there is still potential, even though some valuations are demanding, and see further US equity gains likely, but with volatility.

In addition to the 'FAANG' (Facebook, Apple, Amazon, Netflix and Google), it has highlighted values ​​such as Visa, Mastercard and Adobe, among its favorites. Jiménez-Albarracín, who considers that there is no technological bubble, has advised against betting on 'small caps', which can be "cannibalized" by these giants.

As for European equities, they also forecast increases for 2021, although they recall that the sector composition is less favorable, with less technology, and the hesitant upward revisions suggest a continuous discount against the US.

In the case of the Ibex 35, Jiménez-Albarracín has indicated that the index "does not reflect the situation of the Spanish economy" due to the great weight of banks and electricity companies. He expects it to rise next year and reach 9,000 points, that is, a revaluation of around 10%, in the event that there is no third wave of Covid and the Latin American economy recovers, to which there is a lot of exposure.

The expert pointed out that Spanish banks "have done their homework", but are still trading "at a discount" and has predicted that they could recover and boost the selective Spanish in 2021. In addition, he has trusted that cash dividends will be recovered, one of the main attractions of the index.

Within the Ibex, Inditex, ACS, Ferrovial, Acciona, Grifols, IAG and Amadeus have stood out as favorites. It considers that they continue to be world leaders in their sectors and will support the Spanish stock market when tourism improves and the service sector recovers.

The head of variable income at the investment center of Deutsche Bank in Spain believes that it is "early" to talk about cyclical rotation, although he sees that certain cyclical companies such as infrastructure will benefit from recovery plans and stimuli.