Brendan Caldwell's Top Picks: March 30, 2022
BNN Bloomberg
Top picks from Brendan Caldwell, president and chief executive officer, Caldwell Investment Management
Brendan Caldwell, president and chief executive officer, Caldwell Investment Management
FOCUS: North American large cap stocks
MARKET OUTLOOK:
Making predictions about the future is difficult in the best of times and especially challenging in the current environment. As major exporters of key commodities such as wheat, corn, steel, oil and natural gas, Russia’s invasion of Ukraine has put upward pressure on global commodity prices and will likely worsen already-elevated levels of inflation. The loss of container ships and disruption of major shipping routes are likely to exacerbate ongoing supply chain challenges and hamper businesses’ ability to ‘return to normal.’
Rising interest rates are causing investors to re-evaluate multiples placed on higher valuation companies. This is causing a rotation towards value/cyclical stocks and away from growth names, particularly in the information technology sector which has been a key driver of the S&P 500’s performance over the last decade and certainly throughout the pandemic.
With all that said, if there is one thing we can be reasonably sure of, it is that the markets will likely experience elevated levels of volatility for the foreseeable future. We will continue to focus on high quality, well-managed companies with proven histories of navigating through tough environments and believe professional investment advice can be extremely valuable in times such as these.
