The Globe and Mail reports in its Tuesday edition that investors are pricing in a lot of optimism for the new Trump presidency, expecting lower taxes and higher corporate profits, which bode well for markets in the near term, says money manager Jamie Murray. The Globe's Brenda Bouw quotes Mr. Murray, portfolio manager and head of research at Toronto's Murray Wealth Group, saying: "It's hard to be short the market in a time when the economy is doing really well. We still see healthy balance sheets for [U.S.] consumers and corporations." Mr. Murray sees lower inflation and interest rates, and better liquidity in the financial system. His firm favours companies trading at or below historical valuations, and sectors with supply constraints and underinvestment in the past three years that will benefit from the economic strength. Sectors he likes right now include technology, driven by new opportunities with artificial intelligence (AI); real estate, now that interest rates are coming down; and dividend-paying companies. Some of the top holdings in his firm's Canadian-focused Income Growth Fund include Capital Power, Scotiabank, TD Bank, Enbridge and Chemtrade Logistics. The income fund has returned 26 per cent year-to-date.
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