A pedestrian carries a Louis Vuitton shopping bag from a store operated by LVMH Moet Hennessy Louis Vuitton SE, on New Bond Street in London, United Kingdom, on Wednesday, October 21, 2020.
Hollie Adams | Bloomberg | Getty images
According to investment bank UBS, people will spend billions saved during the coronavirus pandemic on vacations, cars and luxury goods, which has selected a range of stocks that it believes will benefit from the trend.
Europeans and those in the UK have more than 700 billion euros ($ 857 billion) in “excess” savings, the bank’s analysts said in a note released Friday. And the amount that Europeans will spend is expected to increase faster than in the US, they added.
UBS said the recovery in Europe and the UK is a “major investment theme” for this year, and analysts see 50% growth in earnings per share for companies in the regions this year.
Some of the bank’s stock picks have potential gains of 40% or more from the analysts’ target price. Here are 14 of his stocks to buy: