Bruce Campbell, president and portfolio manager at Campbell, Lee & Ross
Focus: Canadian large caps

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MARKET OUTLOOK

The global synchronized growth story is still holding together well and most indicators show a recession is still at least 12 months away. Donald Trump’s Twitter account is keeping us from being higher, as markets are essentially flat year-to-date. Trade uncertainties and his prognostications create uncertainty almost daily and this overshadows the fundamentals. Digging through all of this, there are good values in many places. We expect North American markets to grind their way somewhat higher through the balance of the year.

TOP PICKS

BANK OF NOVA SCOTIA (BNS.TO)

The most international of all Canadian banks, Scotiabank’s recent acquisitions and the related issuance of stock have caused recent underperformance. We believe it will reverse, as it always does.

HUDBAY MINERALS (HBM.TO)

Hudbay is a good late-cycle play which provides exposure to cooper and zinc with a good balance sheet and at low cost.

ALGONQUIN POWER (AQN.TO)

Algonquin Power is an excellent combination of growth and safety. Exactly what is needed is a rising dividend over time to offset rising rates.

PAST PICKS: JULY 4, 2017

WALT DISNEY (DIS.N)

We still find Disney has good value in the midst of vying for 21st Century Fox with Comcast. It would be a good acquisition going forward.

• Then: $107.46
• Now: $104.36
• Return: -3%       
• Total return: -1%

TRANSCANADA (TRP.TO)

The combination of earnings growth and projected dividend growth in TransCanada remains attractive.

• Then: $61.75
• Now: $57.16
• Return: -7%       
• Total return: -4%

TD BANK (TD.TO)

TD has the best bank returns year-to-date as the U.S. strategy pays dividends and should continue to do so.

• Then: $65.47
• Now: $76.53
• Return: 17%
• Total return: 21%

Total return average: 5%

TWITTER: @campbellleeross