Gordon Reid, president and CEO at Goodreid Investment Counsel
Focus: U.S. Equities
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MARKET OUTLOOK
The result of the U.S. election is the catalyst for secular change in financial markets. Goodreid believes it will usher in a bond market reversal and a return to a more cyclically oriented equity market. Goodreid is positioned well, with our average bond term in the two year range and our equity exposure favouring pro-cyclical issues. In addition our active share in both our Canadian and U.S. portfolios is high, indicating a high degree of reliance on individual stock selection vs. the current trend of passive investing.


TOP PICKS

CALATLANTIC (CAA.N)
Latest Purchase Oct 2016 @ $34
Despite the prospect of rising interest rates, CAA has a lot going for it. A combination of entry-level builder Ryland and premium builder Standard Pacific, CalAtlantic has assets in some of the fastest growing areas of the U.S. When combined with building demand, a valuation that is extremely compelling, and the potential for a large boost if tax changes occur, Goodreid believes this is a winner.

CVS HEALTH (CVS.N)
Latest Purchase Dec 2016 @ $79
CVS benefits from the longer term positive catalysts of an aging population and easier access to prescription medication because of healthcare reform. Their purchase of Omnicare will fortify the Pharmacy Benefit side of their business, which has struggled of late, leading to an attractive entry opportunity. With $6 per share in earnings likely in 2016, this issue sells at a reasonable 13 times earnings.

GOLDMAN SACHS (GS.N)
Latest Purchase Dec 2016 @ $239
As a premier global investment banking franchise, GS has been biding its time until the pent up demand of capital markets business broke out. The prospect of significantly less regulation, higher interest rates and a steepening yield curve, and grater financial market activity will lead to much higher earnings in the next few years.

 

DISCLOSURE PERSONAL FAMILY PORTFOLIO/FUND
 CAA N N Y
CVS N N Y
GS N N Y


PAST PICKS: DECEMBER 15, 2015

ALPHABET (GOOGL.O)

  • Then: $760.09         
  • Now: $814.16
  • Return: +7.11%
  • TR: +7.11%

TELETECH (TTEC.O)

  • Then: $28.44
  • Now: $31.40
  • Return: +10.40%
  • TR: +11.90%

VISA (V.N)

  • Then: $78.62
  • Now: $78.49
  • Return: -0.16%
  • TR: +0.59%

TOTAL RETURN AVERAGE: +6.53%
 

DISCLOSURE PERSONAL FAMILY PORTFOLIO/FUND
 GOOGL N N Y
TTEC N N Y
V N N Y

 

FUND PROFILE: GOODREID'S NORTH AMERICAN BALANCED

PERFORMANCE AS OF SEPTEMBER 30, 2016:

  • 1 year: Fund* 6.4%, Index* 9.2%
  • 3 year: Fund* 8.8%, Index* 6.7%
  • 5 year: Fund* 9.9%, Index* 7.3%

 

* Index: Globe Canadian Equity Balanced Peer Index Average

TOP HOLDINGS AND WEIGHTINGS 

  1. Cdn Equities: 34%
  2. U.S. Equities: 37%
  3. Cdn. Fixed Income: 24%
  4. Cash: 5%

WEBSITE: www.goodreid.com