John Zechner's Top Picks: October 25, 2022

Top picks from John Zechner, chairman and founder, J. Zechner Associates

FOCUS: North American large-cap stocks

MARKET OUTLOOK:

Our strategy since last fall has been to hold slight underweight positions in both stocks and bonds and a higher-than-normal cash balance to take advantage of market volatility. The September selloff in stocks and bonds has provided a good opportunity to add to both. We are now slightly overweight on stocks as we believe they are already reflecting a somewhat sharp economic downturn and that valuations are now at an attractive level, particularly considering that we believe we are closer to the end of the period of tightening on interest rate policies by most central banks.