Jan 16, 2020
David Burrows' Top Picks: Jan. 16, 2020
BNN Bloomberg
Full episode: Market Call for Thursday, January 16, 2020
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David Burrows, president and chief investment strategist at Barometer Capital Management
Focus: North American large caps
MARKET OUTLOOK
We are in the midst of a secular bull market in equities that is getting stronger. People think about the market being the S&P 500, which broke out to new highs in 2013 and has been making its way higher since, but interestingly, many markets around the world are just breaking out of multi-year sideways, choppy markets. This includes many of the European markets, like France and Switzerland. Taiwan has made the first new high since 1997; Japan has made the first new high since 1991. So the breadth of the advance in stocks globally is expanding and more and more markets have joined the rally.
I'm not saying the market can't pull back. I would fully expect you will see two to five per cent correction at some point over the next few weeks … But I do think the global economy is slowly beginning to reaccelerate. Markets have been anticipating over the last little while and I think 2020 is probably a pretty good year for stocks.
TOP PICKS
KANSAS CITY SOUTHERN (KSU NYSE)
NOVAGOLD RESOURCES (NG TSX)
T. ROWE PRICE GROUP (TROW NASD)
| DISCLOSURE | PERSONAL | FAMILY | PORTFOLIO/FUND |
|---|---|---|---|
| KSU | Y | N | Y |
| NG | Y | N | Y |
| TROW | Y | N | Y |
PAST PICKS: FEB. 7, 2019
CANADIAN APARTMENT REIT (CAR-U TSX)
- Then: $48.75
- Now: $55.15
- Return: 13%
- Total return: 16%
MASTERCARD (MA NYSE)
- Then: $213.97
- Now: $316.77
- Return: 48%
- Total return: 48%
SERVICENOW (NOW NYSE)
Sold on July 29 at $276.74.
- Then: $226.96
- Now: $306.44
- Return: 35%
- Total return: 35%
Total return average: 33%
| DISCLOSURE | PERSONAL | FAMILY | PORTFOLIO/FUND |
|---|---|---|---|
| CAR-U | N | N | Y |
| MA | N | N | Y |
| NOW | N | N | N |
WEBSITE: barometercapital.ca
TWITTER: @BarometerCap
