Lorne Steinberg's Top Picks: December 22, 2021
BNN Bloomberg
Top picks from Lorne Steinberg, president, Lorne Steinberg Wealth Management
MARKET OUTLOOK:
Despite the onset of the Omicron variant, the world has adapted to the “new normal.” This variant has resulted in governments re-instituting policies to slow the spread, which in turn will negatively impact certain sectors of the economy.
However, due to the effectiveness of existing vaccines, the global economy remains strong and the outlook for corporate earnings is positive.
In reaction to persistently elevated inflation numbers, the Federal Reserve Board announced last week that it expects to raise interest rates sooner than originally planned. The announcement had little impact on the markets. We subscribe to the view that the current inflation rate is transitory and that supply chain issues will gradually resolve themselves over the next 18-24 months. This supports our outlook that bond yields will rise somewhat but remain at levels that are conducive to stimulating long-term growth.
As we head into 2022, we conclude that while COVID may be with us for quite some time, ongoing advancements in vaccines and treatments will support improved economic activity as we all learn to adapt to the pandemic.
TOP PICKS:
