These 4 Plays Could Help Your Portfolio Soar

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Allianz Global Investors' Mona Mahajan believes these four "hybrid" plays could help generate returns with minimal risk.

Allianz Global Investors' Mona Mahajan believes these four "hybrid" plays could help generate returns with minimal risk, according to CNBC.

“It’s important for investors looking for diversification away from both sides of this barbell of growth and value,” the firm’s U.S. investment strategist told CNBC’s “Trading Nation” on Monday. This strategy should be able to carry portfolios until at least fall.

  1. ESG, or environmental social governance, is her first pick. “These are seeing support from policy not only in areas like Europe, but even here in the U.S. as [presidential hopeful] Joe Biden lays out his plan,” Mahajan said.
  2. Housing plays including furnishers are the second pick. “They’re not only benefiting from low rates, but really this whole trend toward moving to suburban homes [and] improving the homes that you’re living in,” she said. 
  3. Mobile payments are her third pick.
  4. The last is medical technology.

“These could really thrive in both environments,” said Mahajan. “Medical technology, for example, could benefit from elective procedures reopening, as well. But really also growth secular plays.”

The S&P 500 has rallied 47 percent since its March bottom, but Mahajan believes other stocks need to catch up. Cyclical stocks have already started to gain momentum.

“Generally speaking, the support from both the Fed and potentially now from fiscal policy should provide the cushion needed to take equities to that next leg higher,” said Mahajan.

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