Christine Poole's Top Picks: April 14, 2022
BNN Bloomberg
Top picks from Christine Poole, CEO and managing director at GlobeInvest Capital Management
Christine Poole, CEO and managing director at GlobeInvest Capital Management
FOCUS: North American large cap stocks
MARKET OUTLOOK:
The geopolitical landscape is changing, potentially leading to a realignment of alliances and a restructuring of global trade. No matter how the war in Ukraine ends, it is unlikely the global economy will remain as tightly integrated as it once was.
The supply chain disruptions arising from the global healthcare crisis highlighted the problems that can arise from sourcing goods from far away countries. More recently, the Russia/Ukraine war highlighted the vulnerabilities that come with relying on autocratic countries for key goods and materials. There is a recognition amongst countries and corporations that the lowest cost source may not always be the optimal solution.
The economic impact of this war will vary across geographies depending on a country’s proximity and reliance on Russian exports. From a global perspective, Russia’s GDP is relatively small, only 1.7 per cent of global GDP so an abrupt slowdown of its economy will have minimal direct impact. It is the collateral impact resulting from the associated price spike in associated commodities due to sanctions on Russian exports that will weigh on global economic growth and increase inflation this year.
