MARKET OUTLOOK:

The correction since the start of the year has been swift and brutal. Starting as a culling of highly-priced speculative stocks, the scope has widened into a wide-spread “risk off” event. 

There are certainly lots of things for the market to worry about including inflation, rising interest rates, the situation in Eastern Europe and of course the ongoing pandemic. 

Nonetheless, we feel that the selling has become indiscriminate and that a number of stocks are being sold without regard to their value. This of course gives rise to buying opportunities. As always, we do not sell into market corrections. 

TOP PICKS:

Netflix (NFLX NASD)
Netflix is a growing global company offering superior content. It has good pricing power. Fears of slowing growth have led to an over-aggressive sell-off of the stock, making it very inexpensive.

Canadian Apartment REIT (CAR-U TSX)
Canadian Apartment REIT will benefit from the continuing housing shortage in Toronto and in other markets. While rent control keeps growth in rental income low, buildings will enjoy full occupancy and continue to rise in value.

JP Morgan (JPM NYSE)
J.P. Morgan remains the best bank in the world. Rising interest rates may work in its favour. The recent decline in price makes the shares very attractive.

PAST PICKS: June 4, 2021

Granite REIT (GRT-U TSX) 

• Then: $79.84
• Now: $94.39
• Return: 18%
• Total Return: 20%

National Bank (NA TSX) 

• Then: $92.98
• Now: $97.25
• Return: 5%
• Total Return: 7%

Costco (COST NASD) 

• Then: $387.52
• Now: $477.54
• Return: 23%
• Total Return: 24%

Total Return Average: 17%