Dean Orrico, president and chief investment officer at Middlefield Capital.

Richard Evans, principal at SSR Inc, joined Orrico on today's Market Call episode.

Focus: Healthcare stocks
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MARKET OUTLOOK
Canada is looking at stronger economic growth in 2017 after a difficult 24-month period, especially in the energy market. Similarly, the U.S. consumer is well positioned to increase spending after years of deleveraging and a recent streak of strengthening labour markets and wage gains. In addition, the Trump administration’s focus on reducing taxes and deregulation should provide a further boost to an already solid North American economic backdrop. The primary concern from a Canadian perspective is the potential impact of a renegotiation of NAFTA. On this point, we believe the Trump administration is more focused on a clawback with Mexico versus Canada, and early indications from those involved are confirming this to be the case.

Equity markets in North America are reasonably valued at present with certain sectors representing exceptional value. Healthcare is underpinned by major growth drivers, such as an aging population, and is currently trading at a substantial discount to the broader market. U.S. financials are also well positioned due to the expectation of a reduction in regulation, an increase in consumer spending and a more positively sloped yield curve.

TOP PICKS

BRISTOL-MYERS SQUIBB (BMY.N)

ROCHE HOLDING (RHHBY.PK)

SIENNA SENIOR LIVING (SIA.TO)
 

DISCLOSURE PERSONAL FAMILY PORTFOLIO/FUND
BMY N/A N/A Y
RHHBY N/A N/A Y
SIA N/A N/A Y


PAST PICKS: OCTOBER 11, 2016

MEDTRONIC (MDT.N)

  • Then: $83.20
  • Now: $74.54
  • Return: -10.40%
  • TR: -9.87%

ROCHE HOLDING (RHHBY.PK)

  • Then: CHF 238.90
  • Now: CHF 234.00
  • Return: -2.05%
  • TR: -2.05%

RITE AID (RAD.N)

  • Then: $7.37
  • Now: $7.10
  • Return: -3.59%
  • TR: -3.59%

TOTAL RETURN AVERAGE: -5.17%
 

DISCLOSURE PERSONAL FAMILY PORTFOLIO/FUND
MDT      
RHHBY      
RAD      


FUND PROFILE: GLOBAL HEALTHCARE DIVIDEND FUND

PERFORMANCE AS OF DECEMBER 31, 2016:

  • 1 month: Fund 0.8%, Index* 1.6%
  • 1 year: Fund -4.9%, Index* -6.8%
  • Since inception: Fund 12.7%, Index* 2.1%

* Index: MSCI World Health Care Index
* Identify if your fund’s returns are based on reinvested dividends. Returns provided must be net of fees!


TOP HOLDINGS

  1. Sanofi-Aventis
  2. Roche Holding
  3. Bristol-Myers
  4. Medtronic
  5. Merck


WEBSITE: www.middlefield.com