David Baskin's Top Picks: March 22, 2022
BNN Bloomberg
Top picks from David Baskin, president, Baskin Wealth Management
David Baskin, president, Baskin Wealth Management
FOCUS: North American large caps
MARKET OUTLOOK:
The war in Eastern Europe has added a major new uncertainty to the financial markets. The disruption in the flow of commodities such as oil, gas and grains has exacerbated an already difficult situation in regard to supply chains and inflation. The possibility of the conflict escalating into a broader regional war, or even a world war, cannot be ignored.
Until the war in Ukraine is over, we expect markets to continue to be volatile and unsettled. At the same time, the major central banks have been united in their determination to raise interest rates by at least 1.5 per cent by the end of 2022. This has led to fairly sharp losses in the bond market even though the yield curve is essentially flat. The positive point, and the most important one for us, is that corporate earnings continue to be robust. At the end of the day, it is earnings that drive stock prices. For this reason we think that many high-quality companies are now oversold and represent strong buying opportunities.
