November 2023
Stéphane Rochon, CFA, Equity Strategist; Richard Belley, CFA, Fixed Income Analyst; Russ Visch, CMT, Technical Analyst; Eric Yoo, Associate; Ernad Sijercic, Associate
Violence, political upheaval, and interest rate increases. Sadly, those factors have come to define much of 2023. Not surprisingly, investors are in a sour mood and much of the market has been under pressure. The silver lining however is that recent weakness has created value in several sectors and stocks although our modus operandi is still very much to be selective. In other words, the focus should continue to be on companies with strong competitive positions, rock solid balance sheets, and reasonably valued stocks. Importantly, the odds of a North American recession in the next year has steadily decreased on our models (now below 45% but still far from negligible of course). This considerably lowers the odds of a painful bear market at least in the next few quarters. It is also a good omen for the Canadian market (i.e. TSX) which is more economically sensitive than the S&P 500 and far less expensive.
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Do not hesitate to give either of us a call at 416 359-7565 or 416-359-7564 or email Sharon Kubicek or Alisa Carli if you have any questions respecting your portfolio and the prevailing investment, economic and political issues at play today.