Gordon Reid's Top Picks: July 12, 2022
BNN Bloomberg
Top picks from Gordon Reid, president and CEO, Goodreid Investment Counsel
FOCUS: U.S. equities
MARKET OUTLOOK:
Financial markets were on a strong run from the financial crisis of 2008, with short disruptions along the way. While North American economies and corporate performance were impressive, the markets had been particularly strong because of an upward adjustment in valuations. Accommodative central bankers created an era of “free” money (remember negative interest rates?) which enhanced the attractiveness of equities and provided a boost in confidence. The result was a historically high valuation premium. The underpinnings of that premium have dissipated. Higher interest rates, worrisome inflation, recessionary fears, and heightened geopolitical concerns have led us into a bear market.
