Ryan Bushell's Top Picks: Northland Power, NFI Group, Canadian Natural ResourcesBNN Bloomberg MARKET OUTLOOK: Markets continue to defy gravity as the record rally is now broadening out to more sectors. Mega-cap technology stocks continue to look vulnerable given they traded down after reporting outstanding Q1 earnings and now face tougher comparable quarters going forward. On a macro level, the proposed tax increases by the Biden administration combined with the prospect of earlier than expected Fed tightening have the potential to hurt U.S. equity index performance on a relative basis. Meanwhile, the TSX has become one of the best performing stock markets globally in 2021 after years of underperformance. Newhaven’s primarily Canadian-listed, infrastructure-focused portfolios have performed extremely well so far this year with strong growth of dividends and share values. We remain cautiously optimistic on the prospects for the rest of 2021 as the vaccine rollout is gaining speed and remaining effective. The shift towards durable goods consumption, personal vehicle travel, and infrastructure development are tailwinds for our portfolios that should endure beyond 2021 as well.
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