Bruce Campbell's Top Picks: December 30, 2021
BNN Bloomberg
Top Picks from Bruce Campbell, president & portfolio manager, StoneCastle Investment Management
Bruce Campbell, president & portfolio manager, StoneCastle Investment Management FOCUS: Canadian Stocks
MARKET OUTLOOK
North American equity markets are hitting All Time Highs on narrowing breadth under the surface. We would like to see this breadth expand in the new year to include mid cap and small cap companies to provide for a healthy continuation of the uptrend.
The top-down economic indicators we follow continue to show accelerating numbers in most areas of the economy. The effects of Omicron on the economy will need to be monitored carefully to ensure we are picking up on any potential slowdown like we experienced last summer because of the Delta variant.
Technical indicators that we follow peaked in March and April of 2021 and investors have since been showing a preference for large cap, more defensive stocks. We will continue to monitor this divergence between large and small as well as conservative and high growth in the months ahead.
Since the start of the Covid-19 outbreak, sector rotation changes have been frequent and positioning in the correct sectors has been important for portfolio returns. Each month we review our top-down indicators and assess the sector rotation during our monthly webinar. The next webinar is scheduled for January 11, 2022. To receive an invitation to the webinar, please send an email to info@stonecastlefunds.ca and we will add your email to our invite list.
