Brian Acker’s Top Picks
Brian Acker, president, chief executive officer and chief investment strategist, Acker Finley
FOCUS: North American large-cap stocks
As I have been saying for the last year or so, this is a “macro” market. What I mean is, before investors can focus on individual sectors and individual equities, big questions must be asked regarding interest rates, currencies and macroeconomic numbers. I.e. are we in a recession yet? Or are we at the end of this interest rate tightening cycle?
In other words, you can have a great portfolio with quality names and good fundamentals and still lose money because big macro themes take precedence over positive company-specific news.
For the last 10 years, at least, I have been recommending U.S. dollar assets to Canadian investors. Over the last year and especially within the last few months, this recommendation has paid off for Canadian investors. We still see upside momentum for the U.S. dollar and will continue to recommend this position for the intermediate term.
As of Friday last week, our research suggests a lot of stocks individually have had negative transits, signalling that caution should be forefront in investors’ minds.
We are cautious, and Guaranteed Investment Certificates (GICs) are yielding around 5.5 per cent. What is not to like about being bearish?
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Investors should have a large proportion of the investable assets in U.S. dollars.
PAST PICKS: May 26, 2022
Walmart (WMT NYSE)
- Then: US$126.00
- Now: US$162.97
- Return: 29%
- Total Return: 32%
Intel (INTC NASD)
- Then: US$43.48
- Now: US$34.73
- Return: -20%
- Total Return: -17%
Johnson & Johnson (JNJ NYSE)
- Then: US$179.46
- Now: US$159.26
- Return: -11%
- Total Return: -8%
Total Return Average: 2%