Zach Curry's Top Picks: August 9, 2023
BNN Bloomberg
Top picks from Zach Curry, director and portfolio manager, Greenrock Capital Partners
FOCUS: North American large caps
MARKET OUTLOOK:
While it appears to have been a very strong start for broader markets thus far in 2023, looks can be deceiving, as a good portion of index returns have come from a small number of companies. When it comes to the S&P 500 Index, returns have been dominated by the “magnificent seven,” which includes Apple Inc., Alphabet Inc., Meta Platforms Inc., Microsoft Corp., NVIDIA Corp., Amazon.com Inc. and Tesla Inc. While market breadth has increased over the past month or so, index returns would be much lower without the performance of these technology companies. This lack of breadth is great if you own these companies today, but one must be careful when things turn the other way. While our client portfolios hold some of these companies, we take pride in a diversified approach so that when some sectors zig, others will zag, which we believe will reduce portfolio volatility while still providing attractive portfolio returns over the long run.
