Equity Markets Have Further to Rise: Brown Shipley’s Kelemen

Variants are in the news. It was a bad day for vaccines. Travel restrictions are in the cards. Virus is with us. The timeline has glitches. But no showstoppers for investors. They don’t need havens, they need growth. It might be wise to look for less leveraged companies.  But wisdom doesn’t seem to be a money-making proposition.

With that backdrop Shanti Keemun of Brown Shipley Co. tells us: Markets are looking through to the future, seeing that we have plans in place for vaccine rollouts. She says:

“So I think when you get this news, it says okay maybe we push out reopening by a a month or a few months, but ultimately we saw the market see a path to go through it and that's why we still see quite a lot of good momentum in shares ... “

How much longer can this continue? So asks the reporter. And Shanti counters:

“Valuations are high largely because we have very low interest rates and that makes any cash flows that you're receiving from bonds or from companies more valuable than they were a year or two ago. We think that interest rates are going to stay low indefinitely, we don't see any scope for interest rate rises before 2023. That's supportive of [greater] asset valuations. We also think governments will be likely to more likely to overstimulate rather than under stimulate.”

on the week

Dow -0.59%

S&P +1.94%

Ndq +4.19%

Au       -$26   

Rus +2.15%