Christine Poole's Top Picks: July 19, 2022 - BNN Bloomberg

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Christine Poole's Top Picks: July 19, 2022 - BNN Bloomberg
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TopPicks from Christine Poole, chief executive officer and managing director at GlobeInvest Capital Management

FOCUS: North American large-cap stocksThe pullback this year has been the result of compression in the price-to-earnings multiple for the broad equity indices. For now, corporate profits are still expected to grow this year and next. Negative profit estimate revisions are likely given a strong U.S. dollar, rising interest rates, inflationary pressures, and supply-chain-related expenses.

Restrictive monetary policy will slow economic growth. Unfortunately, it has been the exception and not the rule that the Fed can engineer a soft landing while embarking on a path of higher interest rates. The task is even more challenging with inflation at 40-year highs and geopolitics contributing to a spike in energy and food costs.

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