Gordon Reid, president and CEO of Goodreid Investment Counsel
Focus: U.S. equities

_______________________________________________________________

MARKET OUTLOOK

The value of a correction is to position a market in a place that attracts renewed interest from a valuation standpoint and to force selling by fearful investors in favour of stronger hands. The most recent correction satisfied these criteria to an extent, but the steeper the recovery, the less likely the impact will be lasting. The result will be more episodes of volatility, with the cumulative effect weighing on markets. This is both useful and healthy: useful in that in a very strong earnings environment extended valuations are quickly resolved and healthy because, after a nine-year bull market, there are too many investors who believe making money is “easy."

TOP PICKS

Gordon Reid's Top Picks

Gordon Reid of Goodreid Investment Counsel shares his top picks: Bank of America, Facebook and Home Depot.

BANK OF AMERICA (BAC.N)
Latest purchase on February 2018 at $32.

Bank of America is poised to benefit from two powerful forces: volume and margin expansion. The margin expansion has been discussed openly as interest rates have begun to rise. Steeper yield curves give banks increasing spreads between deposits and loans. What hasn’t been discussed is the impending growth of loans that banks will experience in a super-charged pro-growth environment.

FACEBOOK (FB.O)
Latest purchase on February 2018 at $175.

Mobile advertising is the foundation of growth for Facebook. Their social networking offerings are highly coveted, reach billions of consumers and benefit as the hardware and software ecosystems steadily develop. The stock has become quite attractive as Facebok has grown into their valuation, currently at about 20 times next year’s earnings.

HOME DEPOT (HD.N)
Latest purchase on February 2018 at $187.

Home Depot revenues eclipsed $100 billion in 2017, up over 50 per cent from the days of the financial and housing crisis in the United States. Perhaps even more impressive is that operating margins have gone from 9 per cent in 2008 to 16 per cent today, resulting in exploding profitability that has supported very strong advancements in the price of the company's shares.

 

DISCLOSURE PERSONAL FAMILY PORTFOLIO/FUND
BAC Y N Y
FB Y N Y
HD Y N Y

 

PAST PICKS:  MARCH 16, 2017

Gordon Reid's Past Picks

Gordon Reid of Goodreid Investment Counsel reviews his past picks: Anthem, Biogen and Washington Federal.

ANTHEM (ANTM.N)

  • Then: $168.42
  • Now: $229.03
  • Return: 35.98%
  • Total return: 37.82%

BIOGEN (BIIB.O)

  • Then: $278.96
  • Now: $285.72
  • Return: 2.42%
  • Total return: 2.42%

WASHINGTON FEDERAL (WAFD.O)

  • Then: $32.95
  • Now: $35.80
  • Return: 8.64%
  • Total return: 10.64%

Total return average: 16.96%

 

DISCLOSURE PERSONAL FAMILY PORTFOLIO/FUND
ANTM Y N Y
BIIB Y N Y
WAFD N Y Y

 

FUND PROFILE

Goodreid’s balanced approach allows investors to participate in the potential growth of equity holdings while mitigating risk through ownership of quality fixed income instruments.

Goodreid’s North American Balanced
Net (after fees) performance to Dec. 31, 2017:

  • 1 year: 10.5% vs. 6.1% for Globe Canadian Equity Balanced Peer Index Average
  • 3 years: 7.5% annually vs. 4.7%
  • 5 years: 10.7 % annually vs. 7.1%

Includes reinvested income.

TOP HOLDINGS

  1. Canadian equities: 33%
  2. U.S. equities: 40%
  3. Canadian fixed income: 17%
  4. Cash: 10%

WEBSITE: www.goodreid.com