Stan Wong's Top Picks: Facebook, Microsoft and IBB
After a tremendous recovery from the March lows, global equities may be due for a pause or some consolidation as rising COVID-19 cases in the U.S. and elsewhere loom over the prospects of an economic restart. A slower economic reopening would dampen corporate earnings expectations and derail equity markets. In addition, renewed U.S.-China geopolitical tensions and an upcoming U.S. presidential election could weigh on investor sentiment in the coming months. From a technical perspective, most North American and global equity indices are approaching short-term upper resistance levels.
In Stan Wong Managed Portfolios, we continue to favour growth stocks over value stocks. We like companies with high-quality attributes as they offer resilience during times of economic uncertainty. Equities with dividend appreciation characteristics are encouraged over those with high yields but no dividend growth. Looking ahead, we view select healthcare, technology, communication and consumer companies benefiting from structural trends accelerated by the global pandemic. Work-from-home, e-commerce, cloud infrastructure and healthcare innovation are a few of the themes we expect to be in focus in a post-pandemic world. Our portfolios reflect these themes and our clients are well-positioned to benefit from them.Sign up for BNN Bloomberg's new weekly newsletter, Home Economics, which aims to help Canadians navigate their personal finances in the age of social distancing and beyond. Have it delivered to your inbox every Friday by subscribing at https://www.bnnbloomberg.ca/subscribe