“Firstly, their sales and profits are unlikely to be directly affected by the Ukraine conflict. Second, most have solid balance sheets with little to no debt, making them defensive as inflation rises.
“These companies outperformed during the recent correction and are leading the recovery,” Mr Allison says.
Optimistic investors should consider buying a low-cost exchange-traded fund (ETF) that tracks the S&P 500, such as the SPDR S&P 500 ETF, Mr Jones suggests.
“This could be an interesting investment to take advantage of any further recovery in stock markets,” he says.
The S&P still looks expensive, trading around 36 times earnings, but war in Europe makes the US appear as a safe haven right now.
“Just don’t expect a calm, smooth ride,” Mr Jones says.
The iShares Core S&P 500 ETF and Vanguard S&P 500 ETF are alternative options for tracking the index. Chinese tech stocks
Chinese technology stocks such as Tencent and Alibaba were popular among western investors but took a beating last year after President Xi Jinping clamped down on the country’s technology billionaires.
Global losses ran into the trillions of dollars, with Tencent’s market capitalisation falling by a staggering $500 billion.
The “tech-lash” eased in March after Vice Premier Liu He called on regulators to adopt a “standardised, transparent and predictable” approach towards overseeing the nation’s big internet services companies.
Now could be a good time to jump back into China technology, says Vijay Valecha, chief investment officer at Century Financial in Dubai.
“Beijing is actively attempting to change course by pledging policies to boost financial markets and stimulate economic growth in a co-ordinated move to boost China tech stocks following the sell-off.”
China has indicated it could hand US regulators full access to auditing reports for about 200 companies listed on the New York Stock Exchange, Mr Valecha says, which would allow Chinese businesses to remain listed in the US.
Mr Valecha cites another reason to be bullish on Chinese technology stocks. While the US Federal Reserve is tightening monetary policy by tapering bond purchases and increasing interest rates, China is cutting lending rates.
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