This article, written by Iva Poshnjari, was originally published by BNN Bloomberg on February 17, 2023, and features insights from Ric Palombi, Senior Portfolio Manager, International Equities and Fixed Income.
As COVID-related restrictions ease across the globe, one portfolio manager says investors should be looking for opportunities that take advantage of growing travel trends.
Ric Palombi, senior portfolio manager of international equities and alternative income at CWB Wealth Management Ltd., said investors should be looking for opportunities in industrial companies as global travel continues to ramp up.
“The analogy we like to use here is ‘In a gold rush, do you buy the companies that are looking for gold or do you buy the companies that supplies the picks and shovels?’” Palombi told BNN Bloomberg in an interview on Friday.
“Well, in this case, they [industrial travel companies] leased the picks and shovels because they leased the planes to global airlines.”
He recommended AB SKF (SKF), AerCap Holdings N.V. (AER) and Brenntag SE (BRE) as his three stock picks in the industrials sector.
Palombi, his family members, his firm and his clients do not hold any of the stocks mentioned above.