U.S. Portfolio Strategist Tony Dwyer reports that event-driven corrections can be used as opportunities in a fundamentally driven bull market. The combination of improving economic data relative to expectations, solid fundamental backdrop, millennial demographic trend and recent market selloff (and subsequent rebound) suggests a slight market overweight, with the intention of getting full overweight on a retest of the recent market low, or a breakout to new highs. Tony suggests a move to a slight overweight in those areas driven by improved credit and household formations - the Financial, Consumer Discretionary and Info Tech sectors, while moving to a slight underweight in the Energy, Materials and Industrial Sectors.
North American Portfolio Strategist Martin Roberge believes that the BoC is targeting a lower CAD. Martin notes that primary problem for the Canadian economy is the huge trade balance deficit in non-energy products and a lower loonie is the only cure to improve Canada's competitiveness. Martin's Chart of the Week shows, the current economic lull is mostly centered on oil-levered provinces.
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