Gordon Reid's Top Picks: October 17, 2023
BNN Bloomberg
Top picks from Gordon Reid, president and CEO, Goodreid Investment Counsel
FOCUS: U.S. equities
MARKET OUTLOOK:
After a strong start to the third quarter, financial markets wilted in the final couple of months. Paradoxically, the reason rests largely with the strength and resilience of North American economies, leading to the adoption of a “higher for longer” stance as it pertains to interest rates. The rapid rise of bond yields in August and September scared off bullish equity investors and the bears took firm hold. It’s counterintuitive to be deeply concerned about a stronger economy than had been expected, but this is one of those times when “good news is bad news.” We expect that as the equity market digests the new reality it will realize that an economy can live with mid-single-digit interest rates, as evidenced by decades of experience in the modern era.
