Lorne Steinberg's Top Picks: April 6, 2022
BNN Bloomberg
Top picks from Lorne Steinberg, president, Lorne Steinberg Wealth Management
Lorne Steinberg, president, Lorne Steinberg Wealth Management
FOCUS: Global value stocks and high yield bonds
MARKET OUTLOOK:
The war in Ukraine and the accompanying sanctions by most western countries will result in higher inflation and slower growth than previously forecast. At the same time, many companies are rethinking their supply chain strategies, and although globalization is not dead, there will be more focus on security of supply versus simply efficiency.
In response to the elevated inflation rate, it appears that the Fed will raise rates and unwind its balance sheet more aggressively than anticipated. Simply put, this is the end of the “zero-interest rate” era. However, this is not necessarily bad for investors.
The higher rates will impact borrowers, and probably cool down the housing market, but wages are rising and consumers are in good enough financial shape to handle the increased cost.
