Markets are back to normal now.
“Everything is more valuable at the moment, so it’s hard to pick areas with easy wins,” Lee said. “I am more optimistic about North America because Asia is just so fragmented as to how it will emerge from COVID. They will have very different policies from country to country. North America is more homogeneous, even though it is governed at the state and provincial levels, so the US and Canada are in a much better position. ,
Lee recommends overweight equities as interest rates rise because they are going to create a tailwind for fixed income. But, he was pleased that the Federal Reserve gave further notice to be more transparent before its tapering. So, even though he expects to see rates rising, “I think it’s going to happen more slowly than people think.”
The BMO ETF is screening for companies with high equity returns, stable year-on-year earnings, low financial leverage, reliable business models, competitive advantages in their sectors, a strong balance sheet and good pricing power, he added. Can pass higher costs to consumers.
However, he added that if a global authority, such as the World Health Organisation, declares that we have reached an endemic site, “it is going to provide a huge lift to the market.”