Things are moving more quickly than usual in financial markets these days.
The mini-banking crisis in the U.S. combined with uncertainty about the economy, interest rates, inflation, corporate earnings and a myriad of other factors requires calm and reasoned thinking to determine what investors should do, if anything.
One thing John O’Connell has been doing for investors in the Davis Rea Equity Fund, and for clients with segregated accounts, is raising cash.
The Chairman, CEO & CIO of Davis Rea Investment Counsel wants to have firepower at the ready when it’s time to pull the trigger on stocks that are trading at what appear to be very reasonable valuations.
Do banks fit that bill yet?
Is Brookfield Asset Management a screaming long-term buy here as the stock gets punished for the company’s exposure to commercial real estate?
These are among the questions O’Connell and colleague Don Ritchie, President of Davis Rea, are mulling daily.
Their experience tells them there are opportunities in the market.
The question is when to deploy the record amount of cash they’ve built up.
They told themselves during previous market downturns to have more cash on hand the next time a bear market reared its head.
In this ongoing discussion with O’Connell and Ritchie, we get their outlooks on the economy and markets along with insight and analysis on a number of topics such as:
- When a recession may start and why it won’t be “deep and dark”;
- What their sources are telling them about the distress in corporate real estate;
- Why the banks are looking very interesting right now;
- The current stock market versus 2008 through 2010;
- What happens when the Fed blinks and starts cutting interest rates, and a lot more.
Take advantage of this thoughtful and informative conversation with a couple of pros…