David Baskin's Top Picks: September 19, 2023
BNN Bloomberg
Top picks from David Baskin, chairman and CEO, Baskin Wealth Management
MARKET OUTLOOK:
It appears that inflation is now likely to be in the three per cent range for the next few months. It is unlikely that North American central bankers will raise rates any further, barring a surprise spike in prices. As a result, we expect to see an easing of longer-term bond yields as institutional investors in particular lock in current yields. Recent economic data on employment and consumer spending is mildly positive, so we expect that third-quarter earnings will be largely as expected.
We do think that certain parts of the technology sector, particularly those related to AI, are ahead of themselves and due for a drawdown. With interest rates set to fall, we should see an uptick in the very beaten-up high-yielding sectors including utilities, pipelines and banks. Oil prices remain a wild-card, and have the capability of causing market problems in the next few months. We see the outlook for crude and natural gas as mostly positive.
