Lorne Steinberg's Top Picks: Corning, Compass Group and Taiwan SemiconductorBNN Bloomberg MARKET OUTLOOK The stock market rally is being driven by a buoyant economic outlook combined with an accommodative central bank policy. The rebound in consumer spending has begun and the U.S. appears ready to pass an infrastructure spending bill which will provide an added boost. At the same time, despite an uptick in inflation, the Fed and other central banks seem in no hurry to raise rates, leaving yield-hungry investors little option but to buy stocks and hope that corporate earnings growth remains strong. Equity valuations have been rising and the dividend yield of the S&P 500 is down to 1.37 per cent, close to its record low. It is getting tougher to find stocks that offer adequate risk/reward, so investors should be actively reviewing their portfolios and consider selling securities which are fully priced. There are still excellent opportunities for investors, but the market as a whole is not cheap.
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