Rob Lauzon's Top Picks: Feb. 23, 2021 - BNN Bloomberg : comp

Rob Lauzon's Top Picks: Feb. 23, 2021 - BNN Bloomberg


Rob Lauzon's Top Picks: Feb. 23, 2021
BNN Bloomberg
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Focus: Global stocks
MARKET OUTLOOK:
Although the fight against COVID is still ongoing, equity markets remain supported by three core pillars.
First, COVID infections are falling as we move past the post-holiday surge, multiple areas are starting to ease lockdown restrictions and the vaccine rollout is accelerating in many countries. Johnson & Johnson (JNJ) recently published its highly anticipated Phase 3 clinical trial data. While the headline 66 per cent efficacy was lower-than-expected, the vaccine proved 85 per cent effective in preventing severe disease.
Second, monetary and fiscal policy are expected to remain highly accommodative for the foreseeable future. Interest rates should remain near-zero for years while governments ramp up fiscal stimulus. The new Biden Administration is currently pushing for a US$1.9 trillion relief plan, which includes cheques to consumers, added unemployment benefits, money for states and localities and more funding for a national vaccination program. Biden is calling this the “first step in a two-step plan to build a bridge to the other side of the crises we face.” We believe that the second step will involve plans for historic investments in infrastructure, with a focus on the clean energy sector. Other regions are making similar pledges. For example, Europe is expected to spend nearly €2 trillion from 2021-2027, with more than €500 billion devoted to green projects.

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