BarometerCapital

Key Points: Market Overview: - March marks the beginning of spring and potential volatility due to historical trends in the presidential election cycle. As it is we have not seen evidence of near term risks. - The market has shown resilience, hitting new all-time highs since January after a correction into the end of October 2023. Opportunities in Canadian and Global Markets: - Despite challenges into October, Canadian stocks now show promise. - Global markets, including Japan, Europe, Mexico, and Brazil, are demonstrating strength after years of underperformance. This is improving equity market breadth. Fixed Income and Stocks: - We are currently in a bond bear market, with stocks outperforming. - Dividend growth stocks are particularly strong, offering better returns than bonds and attracting new buyers interested in outpacing inflation. Commodities and Cryptocurrency: - Potential upside seen in gold and energy, undervalued and under-owned for some time but seeing new catalysts. - Bitcoin and Ethereum show promise, also benefiting from a weaker US dollar. Portfolio Alignment: - Portfolios currently aligned with market themes, ready to adapt to changing conditions. - Financials, especially Canadian banks, performing well, with recent position adjustments. Insights on Canadian Banks: - Stabilization in fundamentals observed after Q4 '23 earnings. - Domestically focused banks outperforming, while those with more US exposure struggling. Sector Performance: - Industrial sector showing strength, with various segments performing well. - Healthcare and consumer discretionary stocks showing modest gains, while consumer staples lag. Portfolio Strategy: - Overweight positions in financials, industrials, and energy; underweight in tech, healthcare, and consumer discretionary. - Launch of a Global Equity strategy to capitalize on positive structural changes. Risk Monitoring: - Monitoring credit risk, volatility, and seasonality. - Cautiously optimistic approach to gold miners and attention to Bitcoin's recent volatility. Market Outlook: - Constructive outlook with always present potential for short-term pullbacks. - Opportunities present in various sectors; encourage questions and discussions for navigating the market landscape.