Brian Acker's Top Picks: Jan. 10, 2020

Brian Acker, president, CEO, and chief investment strategist at Acker Finley
Focus: North American large caps

MARKET OUTLOOK

At Acker Finley we’re still U.S. dollar bulls, and we have been over the last eight or more years.

Over the Christmas holidays, we did a deep dive into everything economic, including country economic statistics and global trade patterns. It’s obvious that the world is in what we will call a "booming depression” at the present time. Yes, there are bright spots, but overall international trade is weakening and economic activity is slowing down in general. Cyclically, we are on a bit of a roll short-term (a carryover from the year-end rally of 2019), but secularly world trade and economic performance are markedly slowing.

The U.S. is now using monetary and fiscal powers to keep growth and liquidity flowing, sustaining and propping up equity valuations. We believe both of these tools will be fully used between now and the U.S. presidential election in November.

TOP PICKS

JOHNSON & JOHNSON (JNJ NYSE)
Last purchased on May 14, 2019 at US$137.36.

Model Price is $189.08, representing an upside of 30 per cent.

CISCO SYSTEMS (CSCO NASD)
Last purchased on Sep. 13, 2019 at US$50.10.

Model Price is $70.17, representing an upside of 48 cent.

MERCK & CO (MRK NYSE)
Last purchased on Aug. 13, 2019 at US$86.30.

Model Price is $125.86, representing an upside of 42 per cent.

PAST PICKS: FEB. 8, 2019

EXXON MOBIL (XOM:UN) 

• Then: $73.98     
• Now: $69.50
• Return: -6%
• Total return: -3%

PFIZER (PFE:UN)

• Then: $42.23
• Now: $39.49
• Return: -7%
• Total return:-4 %

INTEL (INTC:UW)

• Then: $48.84
• Now: $59.53
• Return: 22%
• Total return: 24%

Total return average: 6%