Michael Smedley, executive vice president and chief investment officer at Morgan Meighen & Associates

Focus: Canadian equities
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MARKET OUTLOOK
The market has been in a riotous year-end ascent, created by the Trump rally. What I hadn’t envisaged was an array of colourful or supposedly mad generals joining the team but that fits nicely in light of the Middle East crisis, perhaps a need to moderate a  Chinese style co-prosperity sphere over in the Pacific and anything more that displays the weakness of the United States. There is no doubt in my mind that Trump is being praised as a special kind of genius. He stoked fires under the media to great advantage, fought off all enemies, made Twitter his personal weaponry. In the modern world he outclassed only by the genius of Erdogan who appeared to conduct a reverse coup with a foggy video appeal from a holiday town and in a flash dismissed or locked up more than one hundred thousand  opposition types to strengthen his rule. I don't know what Trump will accomplish but I do know that his enemies are now chuckling their way through this time of amazing change. This crazy rally should pause or reverse before or after the 2016 tax year. Other aspects: It was always going to take an unexpected event to move interest rates up in the face of modest economic performance, dubious employment numbers and high indebtedness. Reflation and unshackling the banks from the wrist slapping they have endured for so long might be part of the catalyst. I am fifty on this. I do like the occurrence of change.

TOP PICKS

KNIGHT THERAPEUTICS (GUD.TO)
Knight Therapeutics was last recommended more than a year ago and has since doubled but without any sensationalism. However, that might change. It has been more reliable than any other company in the volatile health treatments trade. That is a good attribute but instead of taking 19 years to get to the $100 level and beyond like predecessor Paladin Labs the company of which Jonathan Goodman is the centrifugal force might grow faster by using its $600 million and major borrowing power by biting deeply into empires pushed to the roadside like Valeant and Concordia. It might even absorb Paladin – if the appropriate opportunity occurs.

SPIN MASTER (TOY.TO)
I cannot resist using this early pick again, newish and brilliant toy master of the world, its latest sensation  being the Hatchimal (the egg that hatches when cuddled and warmed). The stock is always expensive today but projected forward,  likely always cheaper tomorrow.

NORTHERN DYNASTY (NDM.TO)
The owner of the Pebble resource in southern Alaska, believed to be the world`s largest undeveloped copper/gold, long covered by a single analyst and possibly destined to be the best Trump era success with bringing business success hitherto restricted by an Environmental Protection Agency which he appears to intend to reform. I added to a long held losing position  at above two dollars and I am into profit for perhaps the first time ever.
 

PAST PICKS: SEPTEMBER 15, 2015

SPIN MASTER (TOY.TO)

• Then: $21.45
• Now: $34.34
• Return: +60.09%
• TR: +60.09%

LULULEMON (LULU.O)

• Then: $53.37
• Now: $68.64
• Return: +28.61%
• TR: +28.61%

MIDDLEBY CORP (MIDD.N)

• Then: $113.04
• Now: $134.22
• Return: +18.73%
• TR: +18.73%

TOTAL RETURN AVERAGE: +35.81%
 

WEBSITE: www.mmainvestments.com