Michael Smedley, executive vice president and chief investment officer at Morgan Meighen & Associates
FOCUS: Canadian equities
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MARKET OUTLOOK

The temperature is warming up in more ways than one. Most people want to know how that will impact the markets: "no way" could be the answer, except gold is already warming up. The gain in gold might accelerate on the back of Trump’s realization that he has one chance to appease the American people and become great. This can work because the American people have been schooled for half a century into believing they have the responsibility to save the world from the ascendancy of rogue nuclear states. That is not working out. They are somewhat numbed by decades of being bushwhacked and Obama-rated. I never call numbers but to get the message across I wager that gold rushes up to the US$1,700 level or higher before it fades again. Of course, the general market could benefit by dropping briefly before resuming the long term upward course.

In Canada, the economy is doing quite nicely although the people are quite indebted. A few of our governments are crushing particular housing markets temporarily and this kind of purge should be slightly stimulative. Our non-oil and gas economies are in a fair state and the energy sector, when it gets into gear, will be the extra instead of the classical mainstay, and lift Canada back into top-tier performance.

TOP PICKS

TESLA (TSLA.O)
Bought because it is the first mover in the electric car space and will continue to be the pure leader in what is a sector which could turn out to have limitations.

SAVARIA CORP. (SIS.TO)
A small company in chairlifts and other aids to meet the needs of the increasingly elderly population. Recently bought by me slightly below the current price. 

WELBILT (WBT.N)
An interesting turnaround alternative to Middleby, which has served our portfolios well by its success in the commercial/restaurant chain kitchen appliance business.
 

PAST PICKS: AUGUST 19, 2016

SPIN MASTER (TOY.TO)

• Then: $28.15
• Now: $43.23
• Return: 53.57%
• Total return: 53.57%

JACKPOTJOY (JPJ.LN) - Formerly known as Intertain Group

• Then: £616.50
• Now: £742.21
• Rturn: 20.39%
• Total return: 20.39%

NINTENDO (NTDOY.US)

• Then: ¥22,000
• Now: ¥35,900
• Return: 61.71%
• Total return: 64.31%

TOTAL RETURN AVERAGE: 46.09%