After shares whipsawed all through final week , Rob Luna, chief funding strategist at Surevest, mentioned his agency had “began to witness particular person shares outperforming and exhibiting indicators of already bottoming.” His prediction is that the S & P 500 might attain the three,000-3,200 stage based mostly on earlier bear market valuations. The index ended Friday at 3,583.07 and rose on Monday . “We have now additionally mentioned that as a result of everyone seems to be eyeing these ranges we might simply see a bounce prior,” Luna mentioned. “Everyone’s very scared. There’s plenty of data on the market that is very ambiguous,” he instructed CNBC’s “Avenue Indicators Asia” on Oct. 14. “So whenever you get so many individuals which can be on the sidelines, that is plenty of money that is left to return in and push issues up — brief masking rallies, cash managers fearful about underperforming,” he mentioned. Two themes – and the shares to play them Luna says he likes two themes at present: journey and “small luxuries.” “Individuals are [moving] away from shopping for stuff to purchasing experiences, and I count on journey to stay sizzling for some time. That isn’t mirrored in present valuations,” he mentioned. He named low-cost provider Southwest Airways as one inventory he likes. “Southwest is a best-in-breed airline provider. They have been capable of handle prices significantly,” Luna mentioned. “I do not personally personal the inventory … however I am truly taking a look at probably buying that.” Amid any recession, individuals won’t be making long-haul flights to Europe or Asia, he mentioned. “However I feel they’d be flying from California to Arizona … These short-haul flights are most likely what individuals might be doing — tightening their budgets.” Luna named Netflix for example of a “small luxurious” inventory he likes, in addition to Disney . “Netflix at these ranges may be very enticing as a small luxurious and I like what they’re doing with advertisements,” he mentioned. Netflix has plans to launch a less expensive, advertising-supported product in 2023. Advert-supported subscriptions is probably not a well-liked choice for everybody, however Luna mentioned there might be some individuals it would enchantment to, reminiscent of these “on the border of having the ability to afford a full priced subscription.” “Netflix is certainly one of [those] I name small luxuries [because] if we’re going into recession, persons are most likely going to spend extra time watching Netflix than going out,” he mentioned. The inventory can also be the “most cost-effective we have ever seen” buying and selling at about 19.5 to twenty occasions ahead earnings, Luna mentioned. Netflix inventory is down round 60% year-to-date, Disney is down over 35% and Southwest Airways is decrease by round 25%.