Gordon Reid, president and CEO of Goodreid Investment Counsel
FOCUS: U.S. equities
MARKET OUTLOOK:
This is not a time to be passive in the management of your portfolio. Interest rates are firming, a new administration is in place in Washington, the economy is strongly coming back to life and style gaps within the markets remain wide.
TOP PICKS:
Bank of America (BAC NYSE) Latest Purchase Mar 2021 @ US$36
The good outweighs the bad at Bank of America. While the pandemic caused unprecedented economic disruption, there are signs of a resurgence within the banking group led not only by the reopening but also increasing interest rates. Rising rates and a steepening of the yield curve are a bullish sign for the economy and no bank is better positioned to benefit than Bank of America.
Lowe’s Companies (LOW NYSE) Latest Purchase Mar 2021 @ US$171
The home improvement space has been a part of the Goodreid U.S. large cap portfolio for many years with ownership in Home Depot. Recently our peer comparison studies swayed us to favour Lowe's. Not only does Lowe's trade four multiple points less than Home Depot, but much of the fantastic improvement of fundamentals accomplished by Home Depot are now being replicated by former Home Depot executive and current Lowe's CEO Marvin Ellison.
Raytheon Technologies (RTX NYSE) Latest Purchase Mar 2021 @ US$74
As the world moves toward a reopening commercial aerospace orders are starting to firm. This powerhouse industrial will be rewarded for their earnings power and ability to produce large amounts of cash. Their defence business is robust and will be a stabilizing factor for investors.
| DISCLOSURE | PERSONAL | FAMILY | PORTFOLIO/FUND |
|---|---|---|---|
| BAC NYSE | Y | N | Y |
| LOW NYSE | Y | N | Y |
| RTX NYSE | Y | N | Y |
PAST PICKS: February 25, 2020
Cisco Systems (CSCO NASD)
- Then: $42.74
- Now: $48.49
- Return: 13%
- Total Return: 17%
FedEx (FDX NYSE)
- Then: $145.60
- Now: $277.89
- Return: 91%
- Total Return: 94%
Regal Beloit (RBC NYSE)
- Then: $83.16
- Now: $150.58
- Return: 81%
- Total Return: 84%
Total Return Average: 65%
| DISCLOSURE | PERSONAL | FAMILY | PORTFOLIO/FUND |
|---|---|---|---|
| CSCO NASD | Y | N | N |
| FDX NYSE | Y | N | Y |
| RBC NYSE | N | Y | Y |
Company website: www.goodreid.com
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