Greg Newman, senior wealth advisor and portfolio manager at Scotia Wealth Management
Focus: North American dividend stocks and protection strategies

MARKET OUTLOOK

There are many negatives here: COVID trending unfavourably, unprecedented U.S. election uncertainty and rancor, and a badly needed targeted stimulus bill in the most important economy for stocks being held up. How can the market go up? It may not until the election is settled, with volatility likely being here to stay until then. But investors should not misjudge the positives. The Federal Reserve and the U.S. Treasury have put a powerful bid under stock prices. 

The amount of U.S. stimulus is estimated to end up being far higher than ever before at around 20 per cent of GDP. This along with soaring homebuilding, a very high 14 per cent savings rate, interest rates near zero, low inventories, a likely vaccine within the next 12 months, tremendous cash on the sidelines, commercial real estate being less attractive, and the fact that another en masse lockdown is unlikely, tell us a recovery is likely at hand. Whether that recovery is V, K or U-shaped depends on the industry. Either way, we see ample opportunities to invest now, both in growth and value.

TOP PICKS

Greg Newman's Top Picks

Greg Newman, senior wealth advisor and portfolio manager at Scotia Wealth Management discusses his top picks: Manulife, Magna International and Citigroup.

Manulife Financial (MFC TSX)

Manulife offers investors a rock-bottom valuation with a decent growth rate and an attractive dividend. 

Magna International (MG TSX)

Magna offers investors an attractive way to play an anticipated multi-year recovery in global auto sales while earning a decent dividend yield.

Citigroup (C NYSE)

Citigroup offers investors a rock-bottom valuation with a brisk growth rate from here if the recovery is near while earning a nice dividend yield.

PAST PICKS: NOV. 1, 2019

Greg Newman's Past Picks

Greg Newman, senior wealth advisor and portfolio manager at Scotia Wealth Management discusses his past picks: Shopify, TFI International and Amazon.

Shopify (SHOP TSX)

  • Then: $416.19
  • Now: $1,409.37
  • Return: 239%
  • Total Return: 239%

Amazon (AMZN NASD)

  • Then: $1,791.44
  • Now: $3,194.50
  • Return: 78%
  • Total Return: 78%

TFI International (TFII TSX)

  • Then: $42.04
  • Now: $62.20
  • Return: 48%
  • Total Return: 52%

 

Total Return Average: 123%

 

Website: www.newmangroup.ca