Gordon Reid, president and CEO of Goodreid Investment Counsel

FOCUS: U.S. equities

MARKET OUTLOOK:

While equity markets are historically pushing the upper band of valuation ranges, the circumstances are unique. Not only are interest rates at extremely low levels but the Fed has endorsed a low rate environment. In addition, long neglected areas of the market, namely value and cyclical issues are awakening. Finally, the world seems poised for a synchronized growth spurt. Don’t be scared off.

TOP PICKS:

Jacobs Engineering Group (J NYSE) Latest Purchase Feb 2021 @ US$114

Jacobs Engineering provides exposure to the construction and engineering space as well as the burgeoning rollout of 5G technology. At 19x estimated 2021 earnings and sporting solid double-digit growth potential of both earnings and cashflow, this issue is compelling and the attractiveness will only increase with an infrastructure bill in the U.S.

JPMorgan Chase & Co. (JPM NYSE) Latest Purchase Feb 2021 @ US$135

Arguably the highest quality bank in the U.S., JPMorgan has appreciated as expected as the impact of COVID on the economy became clearer. The prospect of a steepening yield curve is also intriguing. Look for earning in excess of US$10/share in 2021. Coupled with a solid and growing dividend, JPMorgan is attractive.

Qualcomm, Inc. (QCOM NASD) Latest Purchase Feb 2021 @ US$147

At around 20x 2021 anticipated earnings, this industry leader in integrated circuits is a compelling buy. Both the licensing side and the chip business are growing dramatically, which for a company of this size is impressive.

PAST PICKS: February 25, 2020

Cisco Systems (CSCO NASD)

• Then: $42.74
• Now: $46.01
• Return: 8%
• Total Return: 11%

FedEx (FDX NYSE)

• Then: $145.60
• Now: $257.23
• Return: 77%
• Total Return: 79%

Regal Beloit Corp. (RBC NYSE)

• Then: $83.16
• Now: $128.81
• Return: 55%
• Total Return: 57%

Total Return Average: 49%

WEBSITE: https://www.goodreid.com/