Full episode: Market Call for Wednesday, January 10, 2018
Kash Pashootan, CEO and chief investment officer at First Avenue Investment Counsel
FOCUS: North American dividend stocks and portfolio construction
- Q4 earnings will be about everything but the earnings!
- New effective tax rates
- CAPEX plans
- Buybacks and dividends
- Canadian dollar could wipe out returns on U.S. equities for Canadian investors.
- Inflation pressures mounting in Canada; BoC could raise faster than anticipated.
- Portfolio in 2018:
- Cash; gold; make sure your fixed income does not have equity-like risk.
GENERAL MOTORS (GM.N)
Exited struggling EU market and reinvesting in China and technology.
LYONDELLBASELL INDUSTRIES (LYB.N)
Lean cost structure. Global growth pickup should increase demand for plastics. Good valuation and dividend growth.
Chip industry ripe for consolidation and AVGO is at the forefront. Good valuation for high growth.
PAST PICKS: SEPTEMBER 27, 2016
AMTRUST FINANCIAL SERVICES (AFSI.O)
- Then: $26.14
- Now: $12.74
- Return: -51.26%
- Total return: -48.14%
FIRST AMERICAN FINANCIAL (FAF.N)
- Then: $39.96
- Now: $59.51
- Return: 48.92%
- Total return: 55.13%
CISCO SYSTEMS (CSCO.O)
- Then: $31.48
- Now: $39.81
- Return: 26.46%
- Total return: 33.04%
TOTAL RETURN AVERAGE: 13.34%