Stock market is going to rally in second half of 2023, says BMO's Brian Belski
Buying the Dip in Financials
Brian Belski, Chief Investment Strategist at BMO Capital Markets, discusses why he believes that buying the dip in financials is a good investment strategy.
Big Banks Will Be Winners
- Big money banks and Canadian banks will be the winners.
- Small and medium banks will face massive consolidation due to pointed regulation.
- Financials at 14% of the market would be strong overweight and propose great value at these levels.
Stock Picking is Key
- You positively have to be a stock picker.
- Roll up your sleeves and do work on these banks.
- Sift through the rubble to find the best names in big cap banks.
Fed Cuts Rates
- If and when we see softness in the economy, the Fed is going to cut rates.
- We are not going back to zero interest rates anytime soon.
Other Areas Buying Some of The Dips
Brian Belski, Chief Investment Strategist at BMO Capital Markets, discusses how other areas are buying some of the dips where more concerns have been acute.
Thematic Basis for Investing
- Small and medium banks were really things to be but everyone shunned big banks.
- Big money banks and Canadian banks will be winners whether you're a private or commercial real estate investor or institutional investor.
Market Throwing Baby Out with Bath Water
- Money is made when there's blood in the streets.
- The market is throwing the baby out with the bath water.
- From our work, we see growing dispersion in the market but especially on a sector level.
Be a Stock Picker
- We have gotten lazy buying ETFs or being broader on the market.
- You want to be more concentrated with respect to your holdings and maintain that overweight.
Fed Cuts Rates
- If and when we see softness in the economy, the Fed is going to cut rates.