Jason Del Vicario s Top Picks: Dec. 17, 2020
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Focus: North American growth stocks
MARKET OUTLOOK
November saw equities rally strongly as the political situation in the U.S. stabilized to a certain degree and the prospect of effective COVID vaccines were positive developments. No matter what metric one uses, stocks are expensive but for interest rates; if rates stay this low for a long time, then one can convince themselves these prices make sense. We are skeptical enough to be diversified across cash, government bonds, gold (which has struggled of late) and a basket of stocks that sport consistently high returns on invested capital. These strong moat companies continue to dominate our holdings and we continue to add companies that meet our criteria, but are outside of North America. Valuations offshore are more reasonable and we feel the diversification across different currencies is warranted at this juncture as well.
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