Q: Hello. David Rosenberg is recommending a move to cash and, I think, short duration treasuries (per Globe article published today). What are the best investment vehicles for short term treasuries? And what do you think of his current opinion?
Thanks!
Thanks!
5i Research Answer:
The markets are up nicely this year, and were also up substantially in 2023. Although, 2022 was a bear market, and one of the largest drawdowns we have seen in a while. There is likely some credence to taking profits in certain stocks where one sees fit, but from our viewpoint, the markets do have quite a bit of room left to run. The credit markets aren't signaling impending doom, the US economy is robust, rates are likely on a downward path, and corporate profits continue to be strong. The equal-weight indices are just beginning to break out, and historically this has been associated with a late stage in the bull market (7th inning), but also a historically highly profitable period.
For Canada, we like XSB, and for the US we like SHY.