Mar 3, 2023
Greg Newman's Top Picks: March 3, 2023
BNN Bloomberg
Greg Newman's Top Picks
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Greg Newman, senior wealth advisor and portfolio manager, Newman Group, ScotiaMcLeod
FOCUS: North American stocks and protection strategies
MARKET OUTLOOK:
A Bear would argue that inflation is sticky. Interest rates may very well need to tick higher for longer. If one can earn around five per cent on cash or short-term bonds, why take on risk?
A bull would argue that the job market is strong, earnings have not come down much and China’s reopening is just beginning after nearly three years of lockdowns. There is also the risk of missing the first 20 days of a new bull and those 20 days come at counterintuitive times.
Both arguments are compelling. Hence staying on your asset allocation is a wise move at this point.
Use the ongoing uncertainty to buy oversold quality, dividend stocks and stocks that are positioned to benefit from the next bull market.
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TOP PICKS:
High-Interest Savings:
This pays a high risk-free rate that floats should rates go higher.
Telus offers investors a nice growth rate and a high dividend at a reasonable valuation.
Altagas offers investors a nice growth rate, a nice dividend at a compelling valuation.
| DISCLOSURE | PERSONAL | FAMILY | PORTFOLIO/FUND |
|---|---|---|---|
| HIGH-INTEREST SAVINGS | Y | Y | Y |
| T TSX | Y | Y | Y |
| ALA TSX | Y | Y | Y |
PAST PICKS: January 13, 2022
TFI International (TFII TSX)
- Then: $123.91
- Now: $169.18
- Return: 37%
- Total Return: 38%
Bank of Montreal (BMO TSX)
- Then: $147.57
- Now: $129.49
- Return: -12%
- Total Return: -8%
Finning International (FTT TSX)
- Then: $33.74
- Now: $34.29
- Return: 2%
- Total Return: 5%
Total Return Average: 12%
| DISCLOSURE | PERSONAL | FAMILY | PORTFOLIO/FUND |
|---|---|---|---|
| TFII TSX | Y | Y | Y |
| BMO TSX | Y | Y | Y |
| FTT TSX | Y | Y | Y |
