The research team at Scotia Capital released Focus 2022: Running Ahead of Inflation with Equities, which outlines the top stocks ideas from their analysts. The report begins with a strategic outline from Hugo Ste-Marie,
“Global growth: Hard not to be optimistic. Economic growth peaked last summer, and a cooling growth rate tends to unnerve investors. Still, “peak growth” doesn’t mean “no growth.” There’s still a tremendous amount of stimulus in the system, which could potentially lead to a slower-than-expected pace of normalization. We believe growth is, thus, likely to surprise to the upside in 2022 and 2023 as the world economy fully re-opens… Be ready to continue to hear about bottlenecks and price pressures next year, but the narrative could change. As we indicated back in October, we are in the eye of the storm regarding supply chain issues. They will surely continue to make headline news for some time, but we believe the situation will gradually improve in 2022… We believe this could help inflation moderate to more palatable levels (3%-4%). If that’s the case, inflation will remain above what we have been used to see in the past decade”
The Canadian stock picks are Empire Co. Ltd., Agnico Eagle Mines Ltd., Air Canada, Allied Properties REIT, ATS Automation Tooling Systems Inc., Bank of Montreal, Boyd Group Services Inc., Cenovus Energy Inc., Constellation Software Inc., Granite REIT, Interfor Corp., Keyera Corp., Maple Leaf Foods Inc., Northland Power Inc., Onex Corp., Osisko Gold Royalties Ltd., Parex Resources Inc., Rogers Communications Inc., Teck Resources Ltd. and Tourmaline Oil Corp.