MARKET OUTLOOK:
We are U.S. dollar bulls and have been for the last 10 years. All of my past stock picks have been in U.S. dollars over this time frame and on Canadian dollar strength, we would recommend purchasing more U.S. dollars.

Currently, the financial markets are trying to digest - price in - a lot of potential future shocks…

1. Are in the 4th or 5th wave of COVID? Who knows, and is the world going to shut down again?
2. Is inflation back or is this something else?
3. The Federal Reserve is currently tapering their monthly QE, is this wise in face of a shutdown?
4. What are the comparatives…easy comparable from 2020 (full shutdown) to partially-opened economy in 2021…comparable from 2021 to 2022 will be harder.
5. As of today, the fundamentals are in flux, and economic models have been sending conflicting signals and we are in for a little choppiness until clear trends have emerge.
6. According to our Model Price analytics, we still haven’t reached the valuation highs of 2000 (believe it or not). We currently have fair value of the S&P 500 of 5,260 and 5,970 for 2023.

TOP PICKS:

Cisco Systems (CSCO NASD)
Has a model price of $81.92 that’s a 30 per cent upside as of Monday's computer run.

Intel (INTC NASD)
Has a model price of $72.20, that’s a 36 per cent upside as of Monday’s computer run.

Lockheed Martin (LMT NYSE)
Has a model price of $411.29, that’s a 16 per cent upside as of Monday’s close computer run. 

PAST PICKS: January 10, 2020

Johnson & Johnson (JNJ NYSE) 

• Then: $145.06
• Now: $172.70
• Return: 19%
• Total Return: 25%

Cisco Systems (CSCO NASD) 

• Then: $47.13
• Now: $61.32
• Return: 30%
• Total Return: 36%

Merck & Co. (MRK NYSE) 

• Then: $85.36
• Now: $77.85
• Return: -9%
• Total Return: -3%

Total Return Average: 19%