Greg Newman, director and portfolio manager at Scotia Wealth Management
Focus: North American dividend stocks and protection strategies
MARKET OUTLOOK
The bears argue that this time is no different. The yield curve has inverted and thus the clock is ticking towards a recession some 14 to 24 months out.
The bulls argue that we have just gone through a mini growth scare similar to 2011-2012 or 2015-2016 and that due to the central banks accommodation another leg up is upon us. Indeed the recent rotation into value stocks and widening of breadth is evidence of this to them.
We are leaning towards the latter camp so long as the Fed stays agile enough and China-U.S. trade talks progress in a constructive enough direction.
Either way, stocks should rally for the next year or so, as even the first camp acknowledges that this is the typical script.
TOP PICKS
SMARTCENTRES REIT (SRU-U:CT)
It offers investors a nice growth profile with an enviable distribution at a below-sector valuation.
PEMBINA PIPELINE (PPL:CT)
It offers investors a nice growth profile while earning a rich dividend.
TD BANK (TD:CT)
It offers investors a decent growth profile coupled with an attractive dividend at a reasonable valuation.
| DISCLOSURE | PERSONAL | FAMILY | PORTFOLIO/FUND |
|---|---|---|---|
| SRU-U | Y | Y | Y |
| PPL | Y | Y | Y |
| TD | Y | Y | Y |
PAST PICKS: SEP. 28, 2018
FINNING INTERNATIONAL (FTT:CT)
- Then: $31.55
- Now: $23.04
- Return: -27%
- Total return: -24%
AECON GROUP (ARE:CT)
- Then: $16.23
- Now: $18.84
- Return: 16%
- Total return: 20%
BROOKFIELD INFRASTRUCTURE PARTNERS (BIP-U:CT)
- Then: $51.57
- Now: $63.30
- Return: 23%
- Total return: 29%
Total return average: 8%
| DISCLOSURE | PERSONAL | FAMILY | PORTFOLIO/FUND |
|---|---|---|---|
| FTT | Y | Y | Y |
| ARE | Y | Y | Y |
| BIP-U | Y | Y | Y |
WEBSITE: newmangroup.ca
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