David Burrows, President and Chief investment Strategist, Barometer Capital Management

FOCUS: North American Large Caps

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MARKET OUTLOOK:

It has been Barometer's view that developed consumer lead markets (and in particular the U.S.) began a new secular (long term) bull market when the NYSE made a new high early in 2013 which snapped 13 years of falling P/E multiples. Globally, markets corrected from late 2014 through February 2016 and then resumed the upward move following the low in the second week of February.

The new all-time high in the S&P 500 Index following Brexit will now serve to force many who have been too defensive, skeptical and bearish to consider rebuilding equity exposure or face getting left behind. Barometer believes the next two years are likely to surprise many to the upside as the U.S. economy and risk appetite slowly recovers.

Leadership appears to be broadening and can be found in both cyclical and non-cyclical sectors and themes. Which camp wins remains to be seen.

Top Picks:

Texas Instruments (TXN.O)

Sherwin-Williams Co (SHW.N)

McDonald’s (MCD.N)

Past Picks:  July 9, 2015

Electronic Arts (EA.O)

• Then: $70.50
• Now: $76.93
• Return: +9.12%
• TR: +9.12%

Goldman Sachs (GS.N)

• Then: $204.81
• Now: $161.76
• Return: -21.01%
• TR: -21.01%

UnitedHealth Group (UNH.N)

• Then: $119.34
• Now: $140.57
• Return: +17.79%
• TR: +19.84%

Total Return Average: +2.65%

Twitter: @BarometerCA

Website: www.barometercapital.ca