Bruce Campbell, chairman of Campbell, Lee & Ross
Focus: Canadian large caps

MARKET OUTLOOK

In terms of market observations, we’re very dependent on trade success as we hit new record highs and U.S. earnings were better than feared. With record amounts of cash on the sidelines, that contrarian trade has pushed markets higher.

Political overhangs weigh heavy on the markets across the globe and are collectively driving lower levels of capital expenditures and weak CEO confidence. Here in Canada the Liberals won a minority government, which at best can be understood to represent a majority of Canadians being less than enthused with the recent political direction of the country. The western votes in particular highlighted a continuing disconnect between Ottawa and the energy-rich provinces.

In the U.S., President Trump continues to shade China with no real trade war breakthrough in sight. China’s economic statistics continue deteriorating, so its government has stepped up infrastructure spending to soften the blow. At the same time, President Xi is under pressure domestically over the Hong Kong protests and given a substantial portion of China’s capital funnels through that city the protestors must be managed with care.

In the U.K., Brexit negotiations are fast approaching the Oct. 31 deadline set by Prime Minister Boris Johnston, so high drama is likely very near. Elsewhere, interest rates and currencies bounce around like yo-yos as central banks across the globe position for the possibility of a lower U.S. interest rate.

TOP PICKS

Bruce Campbell's Top Picks

Bruce Campbell of Chairman, Campbell, Lee & Ross shares his top picks: Disney, Scotiabank, Suncor.

WALT DISNEY (DIS:UN)

Disney is best in breed in all of its different verticals. Its streaming service is set to launch shortly and will be a nice catalyst. The company hsa been as high as $147 recently and pulled back, creating a nice entry level.

SCOTIABANK (BNS:CT)

Scotiabank has lagged the group over the past year. It’s stabilizing its acquisitions and the international side is progressing well, which should insulate them well from any Canadian economic weakness.

SUNCOR ENERGY (SU:CT)

Energy stocks are historically cheap and the go-to name is Suncor. Highly profitable, even at current prices, pays a nice dividend and will rise first if the group ever gets dollar flow.

 

DISCLOSURE PERSONAL FAMILY PORTFOLIO/FUND
DIS Y Y Y
BNS Y Y Y
SU Y Y Y

 

PAST PICKS: JAN. 3, 2019

Bruce Campbell's Past Picks

Bruce Campbell of Chairman, Campbell, Lee & Ross reviews his past picks: H&R REIT, Nutrien and Royal Dutch Shell.

H&R REIT (HR-U:CT)

  • Then: $20.55
  • Now: $22.32
  • Return: 9%
  • Total return: 14%

NUTRIEN (NTR:CT)

  • Then: $60.75
  • Now: $64.69
  • Return: 6%
  • Total return: 9%

ROYAL DUTCH SHELL (RDS/B:UN)

  • Then: $60.76
  • Now: $60.34
  • Return: -1%
  • Total return: 4%

Total return average: 9%

 

DISCLOSURE PERSONAL FAMILY PORTFOLIO/FUND
HR-U Y Y Y
NTR Y Y Y
RDS/B Y Y Y

 

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