Bruce Murray, CEO and chief investment officer at The Murray Wealth Group 
FOCUS: North American equities
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MARKET OUTLOOK

We are in the midst of one of the great bull markets in our lifetime, and even though we are well into it, market sentiment remains very wary and scared. While sentiment did recover post-U.S. election, the wall of worry is still high with fears. Amazon, artificial intelligence, lack of wage growth, politics, rising interest rates, and the Middle East, North Korea, Russia, and China are all reasons I have heard not to buy the market. We remain generally bullish with strong GDP growth in the key markets of the U.S., Europe and Asia and believe the markets will continue to move up, but expect the ascent rate to lessen from that seen over the past year.

Corporate confidence is at a high level and positive earnings guidance from management is rising. Our focus remains on the new economy and we continue to see strong appreciation potential in the FANG stocks and their supporting cast, as well as leisure providers like Royal Caribbean Cruise Lines. Recently, industrials, especially capital goods suppliers, have done better with the higher than expected GDP growth, while medical-related stocks have been weak due to the uncertainty of where U.S. medical reimbursement rates are going, and Rumps rhetoric against certain industry players like insurance companies and drug prices (sounds like what Hillary Clinton may have done).

In summary we believe there is nothing extremely negative for the market unless the global economy substantially slows. We are in an era of change; artificial intelleigence-driven automation is freeing workers from the industrial sector like mechanization freed labour from the farms. Social media has changed our way of living from entertainment to shopping and we believe these stocks will continue to lead the market in profitability and growth. We may witness another Nifty Fifty-type environment in the next decade.

TOP PICKS

KROGER (KR.N)

ORACLE (ORCL.N)

MEDTRONIC (MDT.N)

 

DISCLOSURE PERSONAL FAMILY PORTFOLIO/FUND
KR Y Y Y
ORCL Y Y Y
MDT Y Y Y

PAST PICKS: APRIL 19, 2017

BMW (BMWYY.US)

  • Then: €89.98
  • Now: €86.20
  • Return: 2.64%
  • Total return: 6.76%

CELGENE (CELG.O) - Bought at US$108.97. Sell/Reduce price: US$133.60. Stock did well and position size too large.

  • Then: $122.92
  • Now: $101.20
  • Return: -17.67%
  • Total return: -17.67%

FACEBOOK (FB.O)

  • Then: $142.27
  • Now: $178.55
  • Return: 25.50%
  • Total return: 25.50%

TOTAL RETURN AVERAGE: 4.86%

 

DISCLOSURE PERSONAL FAMILY PORTFOLIO/FUND
BMWYY Y  Y Y
CELG Y Y Y
FB Y Y Y

FUND PROFILE
MWG Global Equity Fund
Performance as of: October 31, 2017

1 Month: 4.25%
1 Year: 21.0%
2 Year: 11.6%

The MWG Global Equity Growth Fund is the core equity product for the majority of our clients. This portfolio consists of approximately 40 stocks, the majority of which are best-in-class global companies. Stocks in this portfolio tend to exhibit higher than average growth characteristics.

TOP HOLDINGS AND WEIGHTINGS

  1. Alphabet: 6.2%
  2. Facebook: 4.9%
  3. TD Bank: 4.7%
  4. Magna International: 4.4%
  5. Microsoft: 4.2%

WEBSITE: www.tmwg.ca