Christine Poole's Top Picks: November 16, 2021
BNN Bloomberg
Top picks from Christine Poole, chief executive officer and managing director at GlobeInvest Capital Management
Christine Poole, chief executive officer and managing director, GlobeInvest Capital Management
FOCUS: North American large cap stocks
MARKET OUTLOOK:
The broad stock market indices continue to move higher driven by better than expected third quarter corporate profits. Companies are offsetting higher input and labour costs by implementing price increases and with overall productivity improvements. Demand for goods and services remains robust albeit supply constraints are in some cases hampering the ability to meet demand.
Widespread reopening from the pandemic should progress as vaccination extends to children and new highly effective anti-viral treatments are approved. Furthermore, rising vaccination rates and therapeutics should help reduce unplanned factory closures and port disruptions within the major trading partners of the United States.
Admittedly, the supply chain bottlenecks are taking longer to resolve resulting in more persistent inflation. However, the situation should progressively improve, with many of the most impacted companies expecting the issues to be resolved by the second half of next year. Anecdotal evidence suggests the worst is likely behind us.
