Brian Madden's Top Picks: January 20, 2023
BNN Bloomberg
Top picks from Brian Madden, chief investment officer, First Avenue Investment Counsel
FOCUS: North American equities
MARKET OUTLOOK:
Rapid increases in interest rates have undermined stocks, bonds and real estate globally. We have almost reached the “enough is enough” point though, with most of the upward pressure on rates behind us. But with overnight rates between four and five per cent, monetary policy is firmly in the restrictive territory and is unambiguously easing inflation while also slowing the economy. Interestingly, expectations on Main Street have recalibrated to a weaker economic environment, with consumer and business confidence, retail sales and various other indicators pointing to a sobering outlook for 2023. Expectations of professional analysts and Wall Street strategists for corporate profits remain far out of step with the prevailing backdrop.
