John Hood, president and portfolio manager at J.C. Hood Investment Counsel
Focus: Options and ETFs

MARKET OUTLOOK

Despite the dreams of pundits and pollsters, a Biden Democratic sweep did not materialize. Economist David Rosenberg argues that Trump’s unexpected strength means Americans will not accept any Bernie Sanders/Elizabeth Warren socialist agenda, massive capital gains tax increases and modern monetary theory unlimited spending. Rosenberg concluded that the stock market as the “heartbeat of capitalism” demonstrated through this week’s gains that “the U.S. is a centre-right country and will never be centre-left under any circumstances.”

Markets declined two weeks ago due to fear of the Blue Wave and, as Andrew McCreath said, the resurgence of the coronavirus, lockdowns in Europe and the lack of a stimulus package. Markets gained this week with the realization that there would be no massive economic restructuring under Biden.

U.S. unemployment is high at 7 per cent, a long way from 4 per cent last winter but improving. The Institute of Supply Management said manufacturing was growing quickly to 59 per cent last month from 53 per cent in September. When a vaccine is announced likely next year, results on the market will be dramatic. In the meantime there can be some volatility between now and year-end, so I continue to hold a lot of cash. I also expect and hope for some tax-loss selling like in 2018, so I will be waiting with cash until Dec. 24 in Canada and 26 in the U.S. I continue to hold all my U.S. positions except for NASDAQ-based ZQQ, which I bought in March for $61 and of which I sold half the position for $82. 

TOP PICKS

John Hood's Top Picks

John Hood, president and portfolio manager at J.C. Hood Investment Counsel discusses his top picks: VGG, ZWK and ZUH .

VANGUARD U.S. DIVIDEND APPRECIATION ETF (VGG TSX)

BMO COVERED CALL U.S. BANKS ETF (ZWK TSX)

BMO EQUAL WEIGHT U.S HEALTHCARE HEDGED TO CAD ETF (ZUH TSX)

 

DISCLOSURE PERSONAL FAMILY PORTFOLIO/FUND
VGG N N N
ZWK Y N Y
ZUH N N Y

 

PAST PICKS: DECEMBER 5, 2019

John Hood's Past Picks

John Hood, president and portfolio manager at J.C. Hood Investment Counsel discusses his past picks: EWU, XIC and VV.

ISHARES MSCI UK ETF (EWU NYSE)

  • Then: $32.52
  • Now: $27.52
  • Return: -15%
  • Total return: -12%

ISHARES TSX CAPPED COMPOSITE INDEX ETF (XIC TSX)

  • Then: $26.92
  • Now: $26.41
  • Return: -2%
  • Total return: 2%

VANGUARD LARGE-CAP ETF (VV NYSE)

  • Then: $143.37
  • Now: $168.77
  • Return: 18%
  • Total return: 20%

Total return average: 3%

 

DISCLOSURE PERSONAL FAMILY PORTFOLIO/FUND
EWU N N N
XIC Y Y Y
VV Y Y Y

 

WEBSITE: www.jchood.com