Full episode: Market Call Tonight for Tuesday, February 25, 2020
Gordon Reid, president and CEO of Goodreid Investment Counsel
Focus: U.S. equities
The market has been marching to the beat of the Federal Reserve. While earnings always matter, the market is presuming that monetary authorities have its back. Given it’s a presidential election year that very well may be the case. Beware of something that could disrupt that, such as the current coronavirus scare derailing global growth, a Democratic sweep in November or a geopolitical event. Stay invested, but on guard.
Top Pick sales: Bank of America sold March 2019, Visa sold on September, Waste Management and Walmart sold on November, Halliburton sold on February.
CISCO (CSCO NASD)
Last purchased on January at $47.
Cisco is being held back because of macro issues, specifically global economic growth and a cyclical slowdown in advance of 5G deployment. Chuck Robbins assumed the CEO role from John Chambers in 2015 and has transformed the company into a leader in the 5G rollout. Take advantage of price weakness.
FEDEX (FDX NYSE)
Last purchased on January at $150.
With over $70 billion in sales and operating more than 150,000 ground vehicles and 650 aircraft, this company is dealing with a changing and challenging economic backdrop. Europe and China have struggled through the trade wars and now the coronavirus is having an impact. This has created an excellent entry point to this stock.
REGAL BELOIT CORP (RBC NYSE)
Last purchased on January at at $73.
Regal Beloit is a manufacturer of motors, generators, transmissions and other mechanical and electrical products. At 15 times earnings, this stock represents a stable industrial to tuck away in a portfolio.
PAST PICKS: MARCH 21, 2019
HALLIBURTON (HAL NYSE)
- Then: $30.04
- Now: $19.01
- Return: -37%
- Total return: -35%
MORGAN STANLEY (MS NYSE)
- Then: $43.13
- Now: $48.03
- Return: 11%
- Total return: 15%
UNITED AIRLINES (UAL NASD)
- Then: $81
- Now: $70.57
- Return: -13%
- Total return: -13%
Total return average: -11%
Goodreid’s North American Balanced
Performance as of Dec. 31, 2020
- 1 year: 14.0% composite, 14.4% index
- 3 years: 7.1% composite, 4.1% index
- 5 years: 6.7% composite, 4.2% index
INDEX: Equity Balanced category average. Returns are based on reinvested dividends and are net of fees.
- Canadian equities: 32%
- U.S. equities: 37%
- Canadian fixed income: 19%