David Cockfield, managing director and portfolio manager at Northland Wealth Management
Focus: Canadian equities and ETFs
MARKET OUTLOOK
Canadian equity markets have continued their indifferent performance, which is not surprising in light of the acrimonious NAFTA negotiations. With those now behind us, it should be hoped that the TSX will begin to reflect good Canadian corporate earnings and act more like the S&P 500. With little chance of recession on the horizon, plus an end in November to U.S. mid-term elections, a more positive atmosphere for financial markets should develop. Economic numbers are very encouraging as are corporate earnings forecasts. In this type of environment, watch for any market weakness to acquire good quality dividend paying stocks.
UPDATES
- BMO Low Volatility US Equity ETF (ZLU.TO): Switching to the iShares S&P Total Market Index (XUU.TO). Still in progress.
- VANGUARD FTSE EMERGING MARKETS ETF (VEE.TO): Taking losses. Switched to the iShares Core MSCI Emerging Markets IMI Index (XEC.TO).
TOP PICKS
SCOTIABANK (BNS.TO)
Last purchased in October at $74.99.
A Canadian chartered bank with significant exposure in Central and South America. Scotiabank is the second-largest bank in Mexico. Concern about trade war fears, with particular focus on how they have impacted Mexico and may have resulted in the stock’s recent underperformance against the other chartered banks. With NAFTA behind us and a yield well above the other large chartered banks, Scotiabank is a buy.
ISHARES S&P TOTAL MARKET INDEX (XUU.TO)
Last purchased in September at $29.21.
This ETF replicates the performance of the S&P Total Market Index and replaces ZLU. This gives investors the opportunity to participate in the broader U.S. stock market, including more volatile investments. Management fee is a low 0.07 per cent.
ISHARES CORE MSCI EMERGING MARKETS IMI INDEX (XEC.TO)
Last purchased in September at $26.08.
This ETF replicates the performance of the MSCI Emerging Markets Investable Market Index. Management fee is 0.25%. This ETF replaces VEE.
| DISCLOSURE | PERSONAL | FAMILY | PORTFOLIO/FUND |
|---|---|---|---|
| BNS | N | N | Y |
| XUU | N | N | Y |
| XEC | N | N | Y |
PAST PICKS: AUG. 11, 2017
SHOPIFY (SHOP.TO)
- Then: $116.39
- Now: $189.04
- Return: 62%
- Total return: 62%
SNC-LAVALIN (SNC.TO)
- Then: $52.77
- Now: $52.35
- Return: -1%
- Total return: 2%
SCOTIABANK (BNS.TO)
- Then: $76.65
- Now: $75.27
- Return: -2%
- Total return: 3%
Total return average: 22%
| DISCLOSURE | PERSONAL | FAMILY | PORTFOLIO/FUND |
|---|---|---|---|
| SHOP | N | N | Y |
| SNC | N | N | Y |
| BNS | N | N | Y |
TWITTER: @northlandwealth
WEBSITE: www.northlandwealth.com
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