Brian Acker's Top Picks: March 17, 2022
BNN Bloomberg
Top picks from Brian Acker, president, CEO, and chief investment strategist at Acker Finley
Brian Acker, president, CEO, and chief investment strategist at Acker Finley
FOCUS: North American large cap stocks
MARKET OUTLOOK:
Macro strategies have become a lot more complicated with the Russian invasion of the Ukraine. We are still U.S. dollar bulls and have been for the last 8-plus years, consistently recommending U.S. securities on this program with one notable exception: Crescent Point Energy.
What is Model Price saying about the U.S. equity markets?
In our work we have EBV (economic book value) levels — calculated from companies’ balance sheets — that act like support and or resistance. We have a positive transit of EBV+5 for the S&P 500 in the first quarter of 2021. And after hitting over 70 all-time highs during 2021, we have had a correction back to EBV+5 or 4,273 (calculated EBV+5 as of last night) and the market appears to be holding here at this level. The US market should rally off of this level (EBV+5) into quarter-end and may go higher yet as the first quarter earnings start to be released. I’m guessing this EBV+5 level will be tested throughout 2022 and may last until the November elections in fall of 2022. If, of course, the S&P 500 trades lower than EBV+5 this is a warning to investors that a negative transit has occurred, and we would turn very bearish if this were to happen.
