Bruce Campbell's Top Picks: April 22, 2022
BNN Bloomberg
Top picks from Bruce Campbell, president and portfolio manager, StoneCastle Investment Management
Bruce Campbell, president and portfolio manager, StoneCastle Investment Management
FOCUS: Canadian stocks
MARKET OUTLOOK:
Markets continue to face multiple headwinds that have investors nervous. High Inflation, geopolitical conflict, an inverted yield curve, fear of a recession and a U.S. Federal Reserve intent on eliminating inflation by aggressively raising rates are some of the fears facing investors.
Multiple sentiment indicators are hitting levels last seen at the market’s lows during the COVID crash, great financial crisis and the savings and loan crisis. The economy continues to be stronger than any of those previous lows, but markets continue to have lots to be worried about.
During all the uncertainty, we have started to see some positive improvements under the surface. The relationship between high yield bonds and government bonds continues to improve in favour of high yield bonds. Investors may be concerned about inflation and higher rates, but they do not appear to be concerned about credit quality.
