Analysts Say Invest In ETFs, Quality Stocks Amid "Rolling Recession"

Liz Ann Sonders, chief investment strategist with Charles Schwab, believes it is time for investors to beat “rolling” recession by plunking in money in quality shares, basing their investments not on indices but on the behavior of individual companies, products, and services, Nicole Goodkind reported for CNN Business.

Photo Insert: ETFs or exchange traded funds

"With a shrinking number of companies maintaining strength on the bottom line, investors should keep their focus on segments of the market that are high-quality in nature—namely, those with positive earnings revisions, healthy profit margins, and strong balance sheets," said Sonders.

Active investing is a good strategy right now, wrote Jill Carey Hall, a Bank of America strategist, in a note on Tuesday. For five straight weeks, the bank's clients have been big buyers of individual stocks and sellers of ETFs, she wrote.

The spread between single stock and ETF flows so far this year is the widest ever since the Great Recession in 2008, she said.

Active investing is better than passive, and putting money in an "outdex" —a catchy phrase for an actively managed portfolio with stock picks based on quality — is better than an index this year, she wrote.

WEEKLY FEATURE : MVP Group Keeps Lights On During Pandemic