David Baskin's Top Picks: December 8, 2022

Top picks from David Baskin, president, Baskin Wealth Management

FOCUS: North American large caps

MARKET OUTLOOK:

Central bankers around the world are determined to choke inflation. This will involve continued increases in interest rates for at least the next three months. The main source of inflation at this time is wage increases, and the U.S. Federal Reserve has clearly stated that it will raise rates until the labour market is brought into balance through the reduction of employment demand. This is positive for industries with a lot of lower-paid workers (Amazon, Walmart, etc) but negative for capital-intensive industries which will see the cost of their debt burden rise.