Sector Strategist, Denise Chisholm, shares her unique insights and perspectives on the sectors to watch in global markets. Denise explains she has seen a much tighter labour market recently compared to the past two cycles. The most intriguing data that Denise is watching right now is Unit Labour Costs; the difference in this cycle is that we need more job growth, and we need more wage growth. Consumers have been very price sensitive over the last 10 years because they have not had that discretionary income. Denise says that we are not just looking at a different recovery; we also face a different type of consumer. Denise discusses value rotation stating that value stocks have gotten cheaper as they have rallied, and that cheapness is good. Denise also adds that healthcare is on the cheap side while real estate is costly.
Recorded on June 3, 2021.