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

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MARKET OUTLOOK

Overall, I have a positive view of equities versus other asset classes. I continue to have an expectation for increased volatility due primarily to trade issues between the U.S. and most other countries. Generally, I would look at any near-term dip as an opportunity to buy into asset classes that traditionally have favorable risk/return towards the end of the economic cycle. The preferred sectors would be more growth-focused such as financials, materials and industrials, but there also seems to be good value in more defensive names like utilities and some REITs.

TOP PICKS

Cole Kachur's Top Picks

Cole Kachur, portfolio manager at Scotia Wealth Management, shares his top picks: Fortis, Intertape Polymer and Manulife Financial.

FORTIS (FTS.TO)

Fortis is a good income play with some potential for capital growth. It’s more on the defensive side, but looks to be good value as it pulled back significantly earlier in the year. 

INTERTAPE POLYMER (ITP.TO)

Smaller-cap stock that has been beat up over the past year. Intertape is a value play, as I expect that management will be able to turn around some of the margin issues that have been dogging them over the past couple of quarters. It’s yielding 4.1 per cent at current prices and I think has tremendous upside from current levels.

MANULIFE FINANCIAL (MFC.TO)

Generally, insurance companies will benefit from a rising stock market and yield environment. This hasn’t been the case in the past year, as Manulife is down almost 9 per cent from where it traded a year ago. They’ve got embedded diversification with exposure to Canada, the U.S. and Asian markets and should have growth potential to go along with their 3.7 per cent dividend yield.

 

DISCLOSURE PERSONAL FAMILY PORTFOLIO/FUND
FTS N N N
ITP Y N N
MFC N N N

 

PAST PICKS: OCT. 25, 2017

Cole Kachur's Past Picks

Cole Kachur, portfolio manager at Scotia Wealth Management, reviews hias past picks: Pembina Pipeline, Recipe Unlimited and Exchange Income Corp.

PEMBINA PIPELINE (PPL.TO)

  • Then: $40.72
  • Now: $46.31
  • Return: 14%
  • Total return: 18%

RECIPE UNLIMITED CORP (FORMERLY CARA OPERATIONS) (RECP.TO)

  • Then: $25.20
  • Now: $28.18
  • Return: 12%
  • Total return: 13%

EXCHANGE INCOME CORP (EIF.TO)

  • Then: $32.01
  • Now: $33.43
  • Return: 6%
  • Total return: 11%

Total return average: 14%

 

DISCLOSURE PERSONAL FAMILY PORTFOLIO/FUND
PPL Y N N
RECP N N N
EIF N N N

 

WEBSITE: www.colekachur.ca