CIBC Private Wealth in the News
2021 News Left
‘Inflation spike could force Fed's hand on tapering asset purchases’
"May’s CPI data could tip the scales toward an earlier tapering discussion, but should not cause alarm at the Fed. The release was above expectations, but underlying price trends confirm the known impact of base effects and bottlenecks the Fed has categorized as ‘transitory’ for the past several months." Gary Pzegeo, head of fixed income at CIBC Private Wealth Management, told Fox Business. Read
‘Oil Companies Come Under Pressure From Climate Push. Top Executives Say Reducing Demand Will Be Key.’
"There is an unintended consequence of pushing these companies too fast. They’re going to divest some of their projects into private companies that are not under the same level of scrutiny. You’re not actually going to move the ball forward on reducing carbon footprint.” Rebecca Babin, senior energy trader at CIBC Private Wealth Management, told Barron's.
‘U.S. Stock Futures Waver Ahead of Data’
"There will be constant gut checks from both the bond and the stock markets on whether this is transitory, or is turning into permanently higher inflation," said David Donabedian, chief investment officer at CIBC Private Wealth Management." Read
‘GameStop earnings, consumer inflation data: What to know this week’
"Thursday’s CPI data will be scrutinized after last month’s report sent up a flare on higher inflation. While the consensus is for a 0.4% monthly increase, the risk is probably to the upside as bottlenecks and other supply constraints push costs higher." David Donabedian, chief investment officer of CIBC Private Wealth, told Yahoo! Finance. Read
Family Wealth Report
‘CIBC Private Wealth Cautiously Bullish On Stocks, Hedges Inflation Risks’
"The core question to solve is how do you address the narrative of massive policy stimulus and the liquidity of extended valuations? We are seeing all this liquidity starting to have a meaningful impact on the real economy. This is going to lead to a boom in corporate earnings that has staying power into 2022." David Donabedian, chief investment officer, CIBC Private Wealth, told Family Wealth Report.
'Oil extends rise, with prices on track for their highest finish in over 2 years'
"The oil market has already baked in the return of 500,000 to 1 million barrels coming back in the market from Iran this year. If those barrels do not make their way back into the market, the supply deficit could exceed the 2 million barrels per day already expected from September through December.” Rebecca Babin, a senior energy trader at CIBC Private Wealth Management, told MarketWatch.
'Oil’s Latest Surge Could Last. These Stocks Stand to Benefit.'
"Essentially, you’re going to see crude oil go higher, because there’s going to be less production, and there’s going to be this period of time where the energy transition hasn’t taken full seed yet where we still need a lot of fossil fuels and crude oil products. Meanwhile, big oil companies are the main suppliers of a higher-priced commodity. That will help them." Rebecca Babin, a senior energy trader at CIBC Private Wealth Management, told Barron’s.
'It’s a Peak-Good-News Market. Why That Could Be a Problem.'
“If you just look at traditional valuation metrics, they’re extended relative to history, and it’s easy to get somewhere between cautious and bearish, but we continue to have negative real yields across the yield curve, massive [quantitative easing], and a belief that as good as earnings estimates look for this year and next, they may still be too low.” David Donabedian, chief investment officer at CIBC Private Wealth Management, told Barron's.
'Hot Economies Burn Out Quickly. This Is the Type of Stock to Buy.'
“You’re paying average relative valuations for above-average companies and that’s not a bad place to start fishing,” said David Donabedian, chief investment officer at CIBC Private Wealth.
'Gray Divorce Comes With Unique Challenges. How Advisors Can Help.'
“One hundred dollars in cash is worth more than one hundred dollars of stock that has significant unrealized gains. Appreciated stock may be far less valuable than the equivalent cash value at the time of the settlement.” Beth McRae Mayfield, senior wealth strategist for CIBC Private Wealth Management, told Barron’s.
'Meme Stocks Get Caught in Risk-Off Plunge to Snap Hot Streak'
“Our general sense is that that retail, day-trading bit has been on the wane over the last couple of months. I think it has probably peaked. I think people are going to be gradually going back to work, back to the office. I think that is mostly a spent force.” David Donabedian, chief investment officer at CIBC Private Wealth Management, told Bloomberg.
'Stocks Fall for Second Day on Inflation Worries: Markets Wrap'
“The market has been trying to process a very unusual economic environment and a confluence of factors that it has not faced for a long time. It’s a new set of circumstances for markets, so we’ve had more churn over the last couple of weeks. I personally would say that the stock market has absorbed it all extremely well because there’s still a high conviction view on earnings being strong.” David Donabedian, chief investment officer at CIBC Private Wealth Management, told Bloomberg.
'Drivers empty US petrol stations in response to fuel pipeline hack'
“If they waive the Jones Act it could be an indication that the situation could drag on and not be temporary as the market is currently expecting,” said Rebecca Babin, senior energy trader at CIBC Private Wealth.
'Gas prices to normalize ‘to a certain extent’: Energy Trader'
Rebecca Babin, Senior Energy Trader at CIBC Private Wealth, US, joins Yahoo Finance’s Kristin Myers and Alexis Christoforous to discuss the ripple effects of the Colonial pipeline cyber attack. Watch
The Bond Buyer
'Reinvestment needs about to intensify'
“The increase [in commodity prices] confirms what has been largely known and telegraphed by the Fed: The re-opening of the global economy in an environment where supply is constrained should, and has, resulted in higher goods prices.” Gary Pzegeo, head of fixed income at CIBC Private Wealth, told The Bond Buyer.
'Why the stock market keeps climbing after a surprisingly weak jobs report'
“The biggest concern for equity investors is overheating, and a rising bond yield. This would choke off the rally. Today the market has processed the bad economic news and it is a positive for the equity bull market,” said David Donabedian, chief investment officer at CIBC Private Wealth.
'OPEC to Gently Revive Oil Production'
Senior equity trader Rebecca Babin, recently appeared on Bloomberg TV. Watch
'The Dow Erased a 100-Point Loss Because Consumers Are Confident'
“The consumer confidence report gives credence to the fact that we’re on the cusp of an employment boom. The biggest impact of strong economic data is more about reinforcing the cyclical outperformance within the equity market.” David Donabedian, chief investment officer of CIBC Private Wealth Management, told Barron’s.
'The Stock Market Got Spooked Last Week. Here’s This Week’s Surprise.'
“It was no surprise at all, but it still caused a reaction. When you’ve had a run like we’ve had, it’s hard to get upset about a pause.” Dave Donabedian, chief investment officer at CIBC Private Wealth Management, told Barron's.
'6 Stocks to Buy if U.S. Growth Is Peaking'
"So a deceleration in the ISM, particularly in the prices-paid component, could be met with relief because it would mean the Fed wouldn’t have to raise rates to cool an overheating economy," says Dave Donabedian, chief investment officer at CIBC Private Wealth Management. “This environment is somewhat unique,” he says.
The Bond Buyer
'Primary market on a tear, inflows roll in at $1.9B'
The report suggests “a labor market with considerable slack with particular weakness in areas concentrated in service employment,” said Gary Pzegeo, head of fixed income at CIBC Private Wealth, U.S.
'Summer Travel Season Is on the Horizon. Expect Oil Prices to Rise'
The OPEC+ decision was “an effective compromise that also sets up a methodical approach to frequently monitor” the oil market and adjust the pace of supply additions if required, says Adam Karpf, a managing director at CIBC Private Wealth, U.S.
'Stumble in Stocks Lacks Easy Explanation for Wall Street Pundits'
“The weaker start to this week is driven a bit by the notion that everybody deserves a rest once in a while, even the market. We’ve had a magnificent run and markets need time to breathe a little bit -- even in a bull market, you can temporarily run out of buyers for a while.” David Donabedian, chief investment officer at CIBC Private Wealth Management, told Bloomberg.
'Stocks Decline as Traders Wade Through Earnings: Markets Wrap'
"The economic recovery has taken hold, the earnings recovery has taken hold, everything we’ve seen from first-quarter earnings so far has been that it’s going to be a blowout quarter." David Donabedian, chief investment officer at CIBC Private Wealth Management, told Bloomberg.
The Wall Street Journal
'Stock Futures Waver After S&P 500 Hits Record'
“There has never been more bullish expectations on what investors think they are going to hear from companies. With earnings season, you get a lot of buy-the-rumour, sell-the-news, and there is this idea that we are going to get a blowout first quarter.” David Donabedian, chief investment officer at CIBC Private Wealth Management, told The Wall Street Journal.
Austin Business Journal
'"Don’t BS us": Gatekeepers urge PMs to come clean on green credentials'
"It’s important to keep in mind, from my standpoint, that ESG is subjective in certain parts, so it’s tough for me to be the judge and the jury, but I’m trying to get a sense of whether what [the manager is] suggesting has sincerity to it.” John Tennaro, senior vice president and head of impact investing at CIBC Private Wealth Management, emphasized regarding ESG.
‘This Torrid Market Still Has Plenty of Room to Run’
“The near doubling of the 10-year yield was overall good for the stock market.” It’s an unusual combo, but investors saw [the jump in yields] as moving away from deflation, instead of moving toward inflation." Dave Donabedian, chief investment officer at CIBC Private Wealth Management, told Barron’s.
2021 News Right
The Bond Buyer
’After volatile week, munis take a pause'
“Reactions indicate that markets either see longer-term risks to inflation, or near-term risks of the Fed wavering from this new approach. If inflation gets away from the Fed and rises to 3%, they’ll be forced to be more disruptive.” Gary Pzegeo, head of fixed income at CIBC Private Wealth, told The Bond Buyer.
The Washington Post
’U.S. stocks retreat from record on mounting inflation fears'
“We have a pandemic, the recovery from a pandemic, the multitrillion-dollar increase in the Fed’s balance sheet, multitrillion-dollar front-end-loaded fiscal stimulus, and anyone who thinks they know exactly how this is going to play out over the 12 months is overconfident.” David Donabedian, chief investment officer of CIBC Private Wealth Management, told The Washington Post.
’Stock Market’s Weakest Links Dominate With Full-Throttle Fed'
“A lot of these companies that were questionable going concerns are now viewed as survivors and the ones that might be able to, in the short-term, most benefit from the liquidity. There have been all kinds of support mechanisms for lower-quality companies. The Fed has absolutely wanted to create a more hospitable environment for investors to take credit risk, and they have." David Donabedian, chief investment officer of CIBC Private Wealth Management, mentioned to Bloomberg.
’Tech Shares Push Higher While Yields Pare Gains: Markets Wrap'
“What we have to watch out for is a persistent rise in inflationary expectations and that’s how the rise in the 10-year Treasury could potentially get out of control.” David Donabedian, chief investment officer of CIBC Private Wealth Management, told Bloomberg.
‘10-year yield hovers near 14-month high amid Fed bank capital decision’
"Reactions indicate that markets either see longer-term risks to inflation, or near-term risks of the Fed wavering from this new approach.” Gary Pzegeo, head of fixed income at CIBC Private Wealth, told CNBC. Read
‘The Dow Rose 30 Points Because Big Tech Roared Back’
“Right now, the market’s fixation is the10-year Treasury yield.” David Donabedian, chief investment officer of CIBC Private Wealth, told Barron’s. Read
‘Oil reverses gains after attack on Saudi oil facility’
Senior Equity Trader, Rebecca Babin, appeared on Yahoo! Finance. Watch
‘Stock market news live updates: Stocks resurge, ending a three-session losing streak after strong jobs report’
“An above average payroll report (+379k), upward revisions, and a falling unemployment rate (to 6.2%) point to continued recovery. Markets will remain concerned that the potentially massive impact of a $1.9 trillion fiscal relief package could turbo charge the recovery later in the year, and spill into higher inflation," David Donabedian, chief investment officer of CIBC Private Wealth, wrote in an email Friday morning. "A 355,000 gain in the leisure and hospitality sector suggests that the economy is re-opening from COVID lockdowns, with more expected in the months ahead." Read
‘OPEC+ extends output cuts through April, in surprise move’
“The market had been expecting OPEC+ to bring back 1 million barrels,” said Rebecca Babin, senior equity trader at CIBC Private Wealth, U.S. “This is bullish short-term outcome for crude oil as it likely leaves the market undersupplied by 2 million barrels in April.”
Still, it should be noted that “several OPEC+ producers will be looking to ramp production quickly in the second half of the year, which will keep prices in check over the longer term,” she told MarketWatch. Read
‘Oil prices edge higher ahead of OPEC+ decision on production curbs’
“Market participants know that Saudi Arabia likes to use the element of surprise in the OPEC+ meetings to get the market moving higher,” said Rebecca Babin, senior equity trader at CIBC Private Wealth, U.S.
“Estimates for how much production will be brought back on line in April has been ratcheting lower this week [amid] whispers that Saudi Arabia my decide to bring fewer barrels back to the market,” she told MarketWatch. “Current estimates are for 1 million barrels to be brought back online in April, down from the 1.5 million barrel base case estimates to start the week.”
‘The Biggest Changes in Tech Over the Past Decade’
Chief Investment Officer Dave Donabedian, CFA, recently appeared on the Bloomberg Businessweek podcast. Listen
‘This Data Point Signals the Rally Could Be Nearing an End’
The market has learned not to take him at his word. “The Fed can be resolute one day and change its mind the next,” says Dave Donabedian, chief investment officer at CIBC Private Wealth Management. “That’s in the mind of investors.”
‘Ten-Year Rate Spike Sinks Tesla and ARKK, Deepening Tech Carnage’
“The trajectory of the increase is giving some equity investors pause about what if yields keep going up at this rate,” David Donabedian, chief investment officer at CIBC Private Wealth, said in a phone interview. Read
‘No More Gift Tax Exemption? Additional Planning Strategies To Consider For 2021’
Senior Wealth Strategist Caroline McKay was bylined in the following article. Read
‘How the Texas power grid failed and what could stop it from happening again’
“They have the infrastructure in place that meets the needs 99.9% of the time,” said Rebecca Babin, senior equity trader at CIBC Private Wealth. “On these tail events, they’re really ill equipped. They’re not incentivized to invest in the infrastructure to make those improvements.” Read
The Wall Street Journal
‘Stock Futures Waver Ahead of Retail Sales Data’
“The vaccine rollout is picking up pace, Covid cases are going down, and at the same time, you have the administration going full throttle toward a massive relief package that will come very close to President Biden’s $1.9 trillion figure,” said David Donabedian, chief investment officer at CIBC Private Wealth Management.
'Munis, Awaiting Supply, Outperformed Losses in Treasuries'
Separately, the Treasury Department’s announcement that it expects the cash balance to decline, could have an impact on short-term munis, according to Gary Pzegeo, head of fixed income at CIBC Private Wealth, US. Read
‘Family office and wealth manager winners revealed’
CIBC Private Wealth was awarded the best private wealth manager in terms of investment performance, collected by CIO Dave Donabedian who thanked his colleagues for their contributions as strong alpha-generation and a 99% client retention rate contributed to firm assets growing to $73bn during the year.
‘Oil prices hover near 13-month highs amid power outages’
Senior Equity Trader, Rebecca Babin, appeared on Yahoo! Finance. Watch
‘The Dow Rose 32 Points. Thank Vaccines.’
“You have the cavalry coming in terms of more vaccine doses down the road,” David Donabedian, chief investment officer of CIBC Private Wealth, told Barron’s. “You also have the cavalry coming in Congress and the White House with what now looks to be Biden’s $1.9 trillion Covid relief plan. More optimism on Covid, more optimism on fiscal relief and the chances for a real boomlet in the economy later this year.” Read
‘Futures Climb as Weak Jobs Bolster Stimulus Bets: Markets Wrap’
“’This morning’s employment report will support the political argument that more stimulus is needed,’ noted David Donabedian, chief investment officer of CIBC Private Wealth. ‘Weak job growth in January, and downward revisions to the prior two months, will be used to support Janet Yellen’s call to “go big” with federal help for the economy,’ he said, referring to the Treasury Secretary.” Read
‘US economy misses forecasts, adds 49,000 payrolls in January as daily virus cases peak’
“’This morning's employment report will support the political argument that more stimulus is needed,’ David Donabedian, the chief investment officer of CIBC Private Wealth, said in a statement. ‘The large drop in the unemployment rate was partly due to a decline in labor force participation (not necessarily a sign of strength).’” Read
‘GameStop Erased the Stock Market’s January Gains. February Could Be Worse.’
“’Those headline numbers may not be as impressive, but this vaccine has a role to play,’ says Dave Donabedian, chief investment officer at CIBC Private Wealth Management.” Read
‘Dow slumps over 400 points midday Friday as GameStop frenzy vaccine news stresses market’
“’The market has been distracted by the excess volatility in a handful of stocks that a week ago no one cared about,’ wrote David Donabedian, chief investment officer of CIBC Private Wealth, in emailed remarks. ‘The idea that individual investors can gang up on institutional investors is intriguing as is the debate over what should and shouldn’t be regulated,’ the investment officer wrote. Donabedian said that his firm is ‘staying focused on the fundamentals, not what low quality stock is soaring at the moment, and expect to see several positive factors emerge over the coming months.’” Read
‘Bitcoin’s Downward Trend Raises Risk of Moving-Average Breach’
“’When you just look at the extent of the increase and you compare it to any other bubble over the last 50 years, it’s well above anything else that we might have called a bubble literally in the last half century,’ said David Donabedian, chief investment officer of CIBC Private Wealth Management.” Read
'Stocks’ Next Move Could Be Down. What History Says About the Time Till Inauguration'
"“For a while, they’re going to continue to be willing to pay up because of the positive pro-growth backdrop of more Covid relief and additional fiscal stimulus over the course of 2021,” David Donabedian, chief investment officer of CIBC Private Wealth, U.S., said of investors." Read
Wall Street Journal
‘Global Stocks Attract Investors After Covid-19 Vaccine Rollout’
“’A lot of emerging economies just have stronger secular growth rates and yet their valuations are cheap relative to the U.S.,’ said David Donabedian, chief investment officer for CIBC Private Wealth in the U.S.” Read
‘Oil jumps, breaks above $50 for the first time since February as Saudi Arabia announces voluntary cuts’
“Rebecca Babin, senior energy trader at CIBC Private Wealth, noted that while the market views an extension of the cuts as positive, the fact that the group is failing to reach a consensus on the path forward cannot be discounted. This is especially true with Saudi Arabia exercising voluntary cuts.” Read