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

MARKET OUTLOOK

Trade uncertainties, the Saudi oil situation and slowing growth combined with traditional seasonally weak markets make this a time where some caution is due. At the same time, there are still pockets of value in certain sectors and a recession is not right around the corner. GDP growth should be positive, albeit on the slow side into next year.

The Fed cut rates early this week as expected and governments around the world are trying hard to prop up growth. If we get a partial resolution on the trade war later this year, markets will move higher from here. The uncertainty is starting to weigh on economic numbers, so this is an important process to watch.

Interestingly, value stocks have started to outperform growth stocks for the first time in a number of years. Energy and financials in particular offer excellent value if this trend continues.

TOP PICKS

ATCO (ACO/X:CT)

Atco has some capital to redeploy for growth, consistent dividend increases and a large holding in Canadian Utilities for stability.

TD BANK (TD:CT)

TD has underperformed the group recently as others catch up. It’s my favourite bank given its U.S. retail exposure.

CORNING (GLW:UN)

Corning is a consumer/tech company with exposure to digital and optical communications. Recent margin pressure appears to be temporary and provides a good entry point.

PAST PICKS: OCT. 30, 2018

SCOTIABANK (BNS:CT)

• Then: $69.99
• Now: $74.98
• Return: 7%
• Total return: 11%

ALIMENTATION COUCHE-TARD (ATD/B:CT)

• Then: $62.25
• Now: $82.64
• Return: 33%
• Total return: 34%

NUTRIEN (NTR:CT)

• Then: $67.98
• Now: $69.31
• Return: 2%
• Total return: 5%

Total return average: 16%

WEBSITE: clrim.com