Stephen Takacsy's Top Picks: February 25, 2022
BNN Bloomberg
Top picks from Stephen Takacsy, president, CEO and chief investment officer, Lester Asset Management
MARKET OUTLOOK:
Volatility has increased significantly in equity markets due to a confluence of factors, not least is the recent invasion of Ukraine by Putin.
Markets were already muddled by the ongoing effects of the pandemic, central banks increasing interest rates to fight high inflation fueled by supply demand imbalances, supply chain disruptions and labour shortages.
Markets have been driven by easy money from historically low interest rates and momentum investing, with little regard for valuation, led by a narrow group of overbought large cap technology stocks.
The bubble that was forming in technology stocks has been deflated, which is healthy since there was much froth in the market, however much risk remains in new asset classes like cryptocurrencies.
Money has been sucked out of other sectors, creating great investment opportunities at compelling valuations such as in renewable energy, certain industrials, healthcare, and non-resource small cap stocks.
