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Denise Chisholm’s sector and factor perspectives - March 25, 2021

March 30, 2021

Sector Strategist Denise Chisholm thinks we should expect more volatility. Corrections are normal and natural for the market, and we are likely to see them occur at an increasing pace, so it is important for investors to stick to their overall investment philosophy and use those corrections to add to holdings where they think market leadership may go over the next year. Given the rumblings about commodity inflation and whether it will be a problem for profit margins and earnings growth, Denise notes that based on historical analysis, it is more often than not the case that sales accelerate faster than input costs. She thinks the narrative that higher commodity prices will be a significant headwind for future margins may be overstated.

Recorded on March 25, 2021.