Denise Chisholm's sector and factor perspectives – July 11, 2024

In today’s episode, we are once again joined by Director of Quantitative Strategy, Denise Chisholm, to discuss sector trends, market movements, and crucial topics in the investing industry. With the recent CPI number out, Denise believes a rate cut is likely. The latest data shows shelter costs aligning with 2021’s level, signaling that inflation pressures are easing. Denise then cautions that the rapid normalization occurring may feel like a recession given its contrast with the past decades conditions. She emphasizes that investors need to stay open-minded and consider diverse factors influencing the economy beyond recent historical norms. She notes that small caps have begun broadening out after a lagging effect over the past six months. Denise stresses the importance of considering earnings growth, as it drives the market. She says improving risk-reward profiles for small caps is evident if earnings growth accelerates and the Fed cuts rates. Denise closes off by giving her thoughts on Canada’s labour demand, diving into sectors sensitive to interest rates, and identifies attractive opportunities within small-cap stocks amid potential market shifts.

 

Recorded on July 11^th, 2024.

 

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