Christine Poole, CEO and CEO of GlobeInvest Capital Management
FOCUS: US large-cap stocks
MARKET OUTLOOK:
Consumer spending is a major source of economic growth. In the United States, consumer spending accounts for more than two-thirds of economic activity, and in most industrialized economies, consumer spending accounts for about 60 percent of GDP.
Household savings accumulated during the pandemic and a solid employment situation are dampening the impact of rising prices for goods and services. The apparent shift from the general consumer portfolio to products associated with social and travel-related activities means that the high prices of household items are probably lagging behind. Discounting prices to eliminate excess stock of unwanted goods should help ease inflation in the coming months.
The pandemic probably accelerated the bifurcation of consumers in North America. White-collar work was able to move freely to distance work, richer households saw the value of their assets appreciated, and savings were disproportionately concentrated among higher-income households. This cohort may turn out to be the pillar that allows the Fed to design a soft landing.
Until inflation is demonstrably declining, the U.S. Fed is expected to aggressively fight tighter monetary policy, especially with unemployment near historic lows. The hawkish tone of many central banks worldwide is raising interest rates and darkening the prospects for corporate profits.
The valuation multiples of broad indices have retreated closer to long-term historical averages. However, negative future earnings revisions may help increase downward pressure on stock prices.
Investors are encouraged to look beyond volatility and adhere to a strategy of owning a diversified portfolio made up of financially sound and profitable companies.
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BEST SELECTIONS:
Christine Poole’s best options
Christine Poole, CEO and CEO of GlobeInvest Capital Management, talks about her top options: Alphabet, Mondelez International and Royal Bank of Canada.
Alphabet (GOOGL NASD)
Recent purchase price of $ 2,300 in June 2022
Alphabet is a global technology company that provides the world’s leading search engine, Google, and dominates both global computer and mobile search engine queries. The company is benefiting from the shift to online advertising, offering a variety of digital advertising tools driven by artificial intelligence. Other sources of revenue include Google Cloud, YouTube, and Google Play.
Mondelez (MDLZ NASD)
Recent purchase price of $ 60 in June 2022
Mondelez is a global snack company with first-class market shares in biscuits, chocolate and sweets. Its portfolio of world-leading brands includes Oreo, beVita, Ritz, Cadbury and Toblerone. With nearly 40 percent of its revenue from emerging markets, Mondelez is well positioned to benefit from the growing middle-class population in these regions. Mondelez offers investors a dividend yield of 2.3%.
Royal Bank (RY TSX)
Recent purchase price of $ 127 in June 2022
Royal Bank’s diversified business mix consists of personal and business loans (45 per cent of profits), capital markets (25 per cent), wealth and insurance management (26 per cent) and investor and treasury services (4 per cent). per cent). Geographically, Canada accounts for 58% of revenue, the United States for 25% and the International for 17%. The shares offer investors a current dividend yield of four percent.
PAST SELECTIONS: June 16, 2021
Christine Poole’s previous election
Christine Poole, CEO and CEO of GlobeInvest Capital Management, talks about her previous election: Apple, Home Depot, and TD Bank.
Apple (AAPL NASD)
- Then: $ 130.15
- Now: $ 131.85
- Yield: 1%
- Total return: 2%
Home Depot (HD NYSE)
- Then: $ 302.78
- Now: $ 283.50
- Yield: -6%
- Total return: -4%
TD Bank (TD TSX)
- Then: $ 87.84
- Now: $ 90.49
- Yield: 3%
- Total return: 7%
Average total return: 2%
AAPL NASD III HD NYSE III TD TSX III