Jeff Parent, chief investment officer and portfolio manager, Castlemoore

FOCUS: Technical analysis 

MARKET OUTLOOK:

We may be noticing the final turning points in interest rates. Rising long-term yields lost their momentum earlier this month and peaked on Nov. 19. Corporate spreads have narrowed indicating comfort with the current economy. This could be good for many sectors that have been beaten up and have not participated in this year’s rebound led by tech. Areas that could see turnarounds are regional banks in the U.S., utilities and a lot of the Russell 2,000.

  • Sign up for the Market Call Top Picks newsletter at bnnbloomberg.ca/subscribe
  • Listen to the Market Call podcast on iHeart, or wherever you get your podcasts

 

TOP PICKS:

Jeff Parent's Top Picks

Jeff Parent, chief investment officer of CastleMoore Inc., discusses his top picks: SPDR S&P Regional Banking ETF, Kimberly-Clark Corporation, and Docebo.

SPDR S&P Regional Banking ETF (KRE NYSEARCA)

A deeply oversold sector that should benefit from lowering interest rates. Pays a decent dividend. Looking for a 10 per cent price upside in the next six months. Sell below 40.

Kimberly-Clark Corporation (KMB NYSE)

I like the yield of about four per cent. It's trading near the low end of its 52-week range and showing buying support. Earnings were reported a month ago. Begin to sell if it goes below 118.

Docebo (DCBO TSX)

Interesting learning technology company that is regaining earning momentum and price appreciation after the COVID-19 bubble. There’s some profit-taking going on now, may be able to buy below 63. Sell if it drops back to the mid-50s. 

 

DISCLOSURE PERSONAL FAMILY PORTFOLIO/FUND
KRE: NYSEARCA N N N
KMB: NYSE N N N
DCBO: TSX N N N

 

PAST PICKS: August 24, 2023

Jeff Parent's Past Picks

Jeff Parent, chief investment officer and portfolio manager at Castlemoore, discusses his past picks: Direxion Daily 20+ Yr Treasury Bull 3X, Carnival, and Gibson Energy.

Direxion Daily 20+ Yr Treasury Bull 3X (TMF NYSEARCA)

  • Then: US$6.05
  • Now: US$4.99
  • Return: -17%
  • Total Return: -17%

Carnival (CCL NYSE)

  • Then: US$15.71
  • Now: US$14.68
  • Return: -6%
  • Total Return: -6%

Gibson Energy (GEI TSX)

  • Then: $19.64
  • Now: $20.62
  • Return: 5%
  • Total Return: 7%

Total Return Average: -5%

 

DISCLOSURE PERSONAL FAMILY PORTFOLIO/FUND
TMF NYSEARCA N Y N
CCL NYSE Y Y Y
GEI TSX Y Y Y