Portfolio manager Ramona Persaud takes you through her worldview and shares her thoughts on valuations and where she is finding yield and pockets of opportunity. Observing the current concerns about inflation, Ramona notes that dividends can offer a source of real income growth. High-quality stocks typically have pricing power, which means that they can price above their costs; this allows for real pricing that translates into real cash flow. Ramona believes financials are cheaper than they should be right now, because there has been a belief, until very recently, that rates will stay low, and financials are better positioned this cycle than in previous cycles. Ramona likes the fact that financials and banks can offer better valuations and higher dividend yields.
Recorded on February 18, 2021.