Brian Acker, president, CEO, and chief investment strategist at Acker Finley

FOCUS: North American large cap stocks

MARKET OUTLOOK:

When I was on BNN Bloomberg last March 17th, I suggested the markets, especially the U.S., would rally off the then levels (around 4,200) of the S&P 500 Index. This rally has happened to about 4,600 on this same index. We are starting first quarter ‘earning season’ with a little nervousness….Why? Year-over-year comparable numbers for most companies will not look good, many are guessing.

How will the market react to so-so fundamentals with the U.S. Federal Reserve making very hawkish comments on interest rates and quantitative ‘tightening’ to a tune of almost US$100 billion a month? This Fed action is looking very aggressive especially with the worldwide economic dashboard looking like the world economy is slowing down at a considerable speed.

Depending on macro factors, like interest rates, currency and money flows, we will probably retest EBV+5 or 4,229 as we did back in March - timing unknown. The U.S. market and world economy needs some good news for a change and we needed it now if this S&P 500 Index is going to rally to new highs. And there is a lot of potential for good news…ie., the Fed could turn on a dime and start easing again for instance, there is a peace agreement in Ukraine, etc.

However, if the S&P 500 Index starts trading below EBV+5 or 4,230 (as of last night), I would say the U.S. would be in a bear market where investment risk would increase considerably.

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TOP PICKS:

Amgen Inc. (AMGN NASD)

Closed Friday at $252.02. Has a model price of $274.99 - That’s a 9% upside as of Friday’s computer run… I own through the Acker Finley funds

Verizon Communications (VZ NYSE)

Closed Friday at $53.53. Has a model price of $60.33 - that’s a 13% upside as of Friday’s computer run…I own through the Acker Finley funds

Intel Corporation (INTC NASD)

Closed Friday at $47.02. Has a model price of $64.02 - that’s a 36% upside as of Friday’s computer run…I own through the Acker Finley funds

PAST PICKS: March 17, 2022

Bristol-Myers Squibb (BMY NYSE)

• Then: $70.52
• Now: $75.80
• Return: 7%
• Total Return: 8%

Sprott Physical Gold (PHYS TSX)

• Then: $19.38
• Now: $19.59
• Return: 1%
• Total Return: 1%

iShares 20+ Year Treasury Bond ETF (TLT NASD)

• Then: $131.83
• Now: $124.02
• Return: -6%
• Total Return: -6%

Total Return Average: 1%