David Burrows' Top Picks: November 4, 2021
BNN Bloomberg
Top picks from David Burrows, president and chief investment strategist at Barometer Capital Management
David Burrows, president and chief investment strategist, Barometer Capital Management
FOCUS: North American large cap stocks
MARKET OUTLOOK:
Following five and a half months of consolidation, it appears that the next leg of a new reflationary secular bull market began its second leg in early October. This was confirmed by this week’s breakout in the Russell 2000 broad market index.
As many of our long-time clients know, Barometer believes in focusing on market-leading themes (our Disciplined Leadership Approach), sometimes avoiding large parts of the market and running portfolios that look quite unlike the indices. Our equity mandates tend not to look anything like the SPX, our income portfolios unlike the bond market and our balanced mandate are very different from a traditional 60/40-balanced mix.
This will be increasingly important given the likelihood that we have moved from almost 40 years of a disinflationary cycle to one that is reflationary, where bonds and bond-like sectors (currently over-owned after years of outperformance) could underperform for a long time forward.
