Denise Chisholm's sector and factor perspectives – October 3, 2024

Today, Denise Chisholm joins us on the program for a deep dive into the factors shaping today’s markets. She discusses the recent US Vice-Presidential political debate as well as the influence of taxes and commodities on the market. Denise talks about the vice-presidential debate and describes it as neutral and lacking new information. She emphasizes that political leadership, while a major talking point, often has minimal long-term impact on markets. She notes that historically, markets perform better with divided governments and tends to discount political changes before they happen, reducing volatility. Denise also touches on geopolitical risks and the potential for an oil price shock. She says that while Middle East tensions can drive oil prices up, a true risk to the economy would only emerge if prices hit $160 per barrel. At those points, the impact on corporations and consumers would be significant enough to pose recession risks. Shifting to gold, Denise points out that while gold prices are inversely related to interest rates, gold equities don’t always outperform when gold rises. Instead, she sees better opportunities in sectors like financials, real estate, and industrials, especially if those sectors are poised for recovery.

 

Recorded on October 3^rd, 2024.

 

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