Cathie Wood discusses the Bitcoin ETF race and BlackRock's involvement. Maryam Ghahremani talks about the rise of live shopping and its impact on retail. Sri Natarajan discusses leadership moves at UBS and Goldman Sachs. Dave Donabedian shares insights on the US equity market performance and outlook.
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Quick takeaways
Cathie Wood is optimistic about the approval of a Bitcoin ETF by the SEC
CIBC Private Wealth Management is trimming high-flying stocks and adding to defensive sectors to navigate potential market challenges.
Deep dives
Market Sentiment and Balance
The US equity market has shown more balance in recent months, with a slowdown in the performance of high-flying tech and growth stocks. This balance is reflected in the outperformance of the equal-weighted S&P 500 index. However, there are concerns about the risk of a recession, as leading economic indicators suggest potential stumbling blocks for the economy. This cautious outlook may lead to a more challenging and volatile market in the coming months, with the possibility of a market pullback or correction.
Sector Focus and Portfolio Positioning
In light of the potential challenges in the market, CIBC Private Wealth Management has been trimming high-flying stocks and adding to more defensive sectors such as healthcare, utilities, and REITs. The emphasis is on valuation and investing in stocks with dividend growth potential. The investment approach is characterized by patience and gradual deployment of capital, with a focus on high-quality names at the right price. The portfolio positioning aims to strike a balance between growth-oriented stocks and defensive sectors.
Outlook on Interest Rates and Fed Policy
CIBC Private Wealth Management believes that the Federal Reserve is done raising rates, although the Fed may continue to discuss the possibility of future rate hikes. The forecast suggests that core inflation will come down in the next six months, reducing the risk of a recession. Futures markets indicate the possibility of rate cuts in March, but the outlook suggests a potential first rate cut before that timeframe.
Bloomberg Intelligence Senior ETF Analyst Eric Balchunas joins to discuss his conversation with Ark Investment Management Founder, CEO, and CIO Cathie Wood. Maryam Ghahremani, CEO of Bambuser, talks about the business of video commerce. Bloomberg Senior Finance Reporter Sri Natarajan discusses leadership moves at UBS and Goldman Sachs. And we Drive to the Close with Dave Donabedian, CIO at CIBC Private Wealth Management.
Hosts: Tim Stenovec and Jess Menton Producer: Sara Livezey