Barry Schwartz's Top Picks: June 21, 2023
BNN Bloomberg
Top picks from Barry Schwartz, chief investment officer and portfolio manager, Baskin Wealth Management
FOCUS: North American large-cap stocks
MARKET OUTLOOK:
The significant divergence between the performances of the Nasdaq Composite and the S&P 500 Index versus the S&P/TSX Composite Index this year reminds us about the importance of diversification by business quality. Investors were beaten up last year by owning too many “tech” or “growth” names. This year, investors are being punished for owning commodity, cyclical and financial names. You will never own all the right investments in any one year. In fact, if every stock that you own is working in one year, you are probably not well-diversified. Being diversified means that you own different companies that will have different performances in different environments in the short term. Over the long run, what counts is owning businesses run by excellent managers that know how to create value.
