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North American Equity | Rising oil prices, COVID-19 impacts in China and recession concerns in the U.S.

Jun 30, 2022 3:12:38 PM / by iAIM

The Canadian market is resilient as US equity valuations reach historically low levels. Find out why.

Key takeaways from this month's comment by Jean-Pierre Chevalier and Marc Gagnon:

  • Despite difficult market conditions, the Canadian portion of the Fund performed relatively well. The underweight in Shopify contributed positively to performance.
  • US economic growth is softening as supply normalizes in goods and labour. This should help get inflation under control and abate the rise of long-term interest rates. Commodities and politics remain the wildcards.
  • Still in the US, dislocations are apparent in many structural growth opportunities, but selectivity remains important. Biotechnology and software valuations are interesting.
  • US equity indexes have a leadership problem. The strategy is to look for the thematic winners of this decade, not the previous one.

Read the article

 

 

Jean-Pierre Chevalier, CFA
Senior Director, Portfolio Manager, US Equities and Thematic Investing

Marc Gagnon, M. Sc., CFA
Principal Portfolio Manager, North American Equities

 

 

Topics: Portfolio Managers

Written by iAIM