Cole Kachur, portfolio manager at Scotia Wealth Management
Focus: Canadian equities and ETFs

MARKET OUTLOOK

Volatility is going to be the new normal as we continue to get conflicting economic data. The market will continue to swing based on Fed comments, trade and geopolitical tensions. We currently recommend clients take a neutral to slightly below neutral equity weighting and are holding larger weights in cash, fixed income and alternative investments. For equity positioning, we are recommending blue chip companies that have high barriers to entry and predictable revenue streams even in slow growth economic conditions.

TOP PICKS

BMO TACTICAL DIVIDEND ETF (ZZZD:CT)

This is a more defensive ETF that has a growth mandate but can also go anywhere in the pursuit of protecting capital. It is currently positioned with a bit more short-term liquidity through fixed income and defensive industries. It is managed by Larry Berman (of Berman’s Call) and he has done a good job taking advantage of upside opportunity and being tactical in maneuvering the portfolios holdings and risk profile.

SQUARE (SQ:UW)

Society continues to move away from paper transactions in favor of electronic payment platforms. Square is a high-growth company in a high-growth industry and I think it has the potential to use the data it collects to further enhance its offerings. Square is well on their way to becoming a one-stop shop for buyers and sellers through the technology ecosystems they’ve created. They also have a “cash app” that has seen significant user growth and revenue generation for the company. It will be a volatile company, evidenced by their share price movement, but I think it will grow to one of the largest financial platforms on and beyond the web.

SUNCOR ENERGY (SU:CT)

Suncor is one of the top energy names in Canada and has better ability to manage volatility in energy prices due to their diverse revenue streams. While I don’t love the energy sector as a whole, I feel that Suncor can be a core holding, especially adding at these levels with a dividend in the 4.6-per-cent range. It’s come down significantly over the last few months and while it could continue to draw down in the short term, I think medium to long term it’s a good investment at this price.

PAST PICKS: AUG. 9, 2018

FORTIS (FTS:CT)

• Then: $42.88
• Now: $54.20
• Return: 27%
• Total return: 33%

INTERTAPE POLYMER (ITP:CT)

• Then: $17.79
• Now: $18.43
• Return: 4%
• Total return: 8%

MANULIFE (MFC:CT)

• Then: $24.16
• Now: $22.17
• Return: -8%
• Total return: -3%

Total return average: 13%

WEBSITE: colekachur.ca