Full episode: Market Call for Friday, July 10, 2020
Brian Acker, president, CEO and chief investment strategist at Acker Finley
Focus: North American large caps
The good news is we're halfway through 2020. The bad news is we're halfway through 2020.
We are U.S. dollar bulls and have been for the last eight years. All my stock picks have been in U.S. dollars over this time frame and on Canadian dollar strength, we would recommend to purchase more. When we think about the second half of the year, the issues that global institutions will potentially have to respond to will be interesting and probably historic. 2020 has a feel of significant change in market leadership and the economic backdrop that we have been witnessing over the last decade. And then there's the US’s presidential election: I hope everyone has their seatbelts on because it will be a barn-burner for sure.
We're entering into second quarter’s earnings season and yes, we know the earnings on some companies will be awful. However some will be good, if not exceptional. At zero interest rates, what valuation should successful companies not impacted by COVID (mostly tech stocks) trade at? As we have been seeing over the last month and a half, substantially higher. As second quarter earnings are released, look for increased variability in individual industries and companies. Stock-specific news can crater share prices in a heartbeat or the opposite if one is short the stock. It should be fun.
Oracle Corporation (ORCL NYSE) - According to Model Price, there is an upside of 45 per cent.
Bristol-Myers Squibb (BMY NYSE) - According to Model Price, there is an upside of 92 per cent.
Intel Corporation (INTC NASD) - According to Model Price, there is an upside of 86 per cent.
Past Picks: July 29, 2019
Johnson & Johnson (JNJ NYSE)
- Then: $133.02
- Now: $142.28
- Return: 7%
- Total Return: 10%
Apple (AAPL NASD)
- Then: $209.68
- Now: $380.92
- Return: 82%
- Total Return: 84%
Fidelity National Information Services (FIS NYSE)
- Then: $136.71
- Now: $135.45
- Return: -1%
- Total Return: 1%
Total Return Average: 32%