Over the last two years, the U.S. economy has continually improved.
That’s translated to increased consumer and business confidence, says Gary Baker, leader of the fundamental Canadian equity team at Connor, Clark & Lunn Investment Management.
“There’s [also] been a reduction in U.S. government deficits,” he notes, and “the U.S. housing market is showing signs of recovering [from] a very severe distress situation during the financial crisis.”
So, if clients aren’t already, they should be capitalizing on U.S. growth.
Currently, Baker sees potential in the U.S. manufacturing sector, especially in stocks tied to the shale oil and natural gas industries. Companies in this space have gained access “to low-cost, domestically produced energy, which has reduced their [use of] foreign energy supplies.”
And that’s leading to a manufacturing renaissance, he adds.
Already, seven new chemical plants are being built, says Baker, and these plants will contribute to the ongoing surge in energy production across America.