Greg Newman, director and portfolio manager at Scotia Wealth Management
Focus: North American dividend stocks and portfolio strategist

MARKET OUTLOOK

The December market showdown has begun. Tensions are in place between those who are locking in gains for the year versus those willing to let it ride. Who is right will likely depend upon what transpires shortly on the tariff front. A continued de-escalation in hostilities will help China, which in turn helps Europe and should continue to support the uptick in global PMIs. The opposite is, of course, true.

We believe the latest rhetoric is likely an ongoing extension of the bargaining process. Any new tariffs (if they’re levied at all) aren’t likely to remain for long. Thus, the global economy should continue to improve. This combined with a positive sloping yield curve, accommodative central banks, the Federal Reserve’s money-printing and a dividend yield on the S&P that’s higher than a 10-year bond’s, and the path of least resistance for the market is generally up.

Stay long.

TOP PICKS

SHOPIFY (SHOP:CT)

Shopify offers investors an exciting growth play in the world of online commerce for small- and medium-sized businesses.

RESTAURANT BRANDS INTERNATIONAL (QSR:CT)

This company offers investors an exciting play on the global growth of three iconic brands with an attractive dividend.

NUTRIEN (NTR:CT)

Nutrien offers investors an exciting play on the growth of products that can enhance the supply of agricultural production while paying a generous dividend.

PAST PICKS: DEC. 19, 2018

BROOKFIELD INFRASTRUCTURE PARTNERS (BIP-U:CT)

• Then: $46.57
• Now: $67.77
• Return: 45%
• Total return: 52%

CP RAIL (CP:CT)

• Then: $242.26
• Now: $326.92
• Return: 35%
• Total return: 36%

POWER FINANCIAL (PWF:CT)

• Then: $25.83
• Now: $32.87
• Return: 27%
• Total return: 35%

Total return average: 41%

WEBSITE: https://newmangroup.ca/