Robert McWhirter, president of Selective Asset Management Inc
Focus: Canadian equities and technology stocks

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MARKET OUTLOOK

While U.S. 10-year bond yields are expected to move up to 3.5 per cent, which reflects strong job and economic growth south of the border, rising rates shouldn't prevent stocks from making new highs over the next 12 months. A rising interest environment is typically positive for Canadian banks, as they benefit from improving interest spreads and profit margins.

Many stock markets around the world are breaking out of multi-year bases due to strong worldwide economic growth, which should drive  copper and zinc prices higher.

The Canadian Dividend strategy looks for stocks with above-average growth at better-than-market valuation multiples. The results have been great during the recent market volatility. In the first week of February (to Friday, Feb. 9), the Canadian Dividend strategy outperformed the S&P/TSX Total Return Index (TXSTR) by 125 basis points. Last week, the Canadian Dividend strategy was up 3.41 per cent, adding a further 72 basis point of outperformance versus the TSXTR. The Canadian Dividend strategy has outperformed the TXSTR by 197 basis points month-to-date.

TOP PICKS

CANADIAN TIRE (CTCa.TO)    

OPEN TEXT (OTEX.TO)

WEST FRASER TIMBER (WFT.TO)

 

DISCLOSURE PERSONAL FAMILY PORTFOLIO/FUND
CTCa Y Y Y
OTEX Y Y Y
WFT Y Y Y

 

PAST PICKS:  APRIL 26, 2017

LOBLAW (L.TO)

  • Then: $75.70
  • Now: $65.25
  • Return: -13.79%
  • Total return: -12.78%

NEW FLYER INDUSTRIES (NFI.TO)

  • Then: $49.99
  • Now: $56.53
  • Return: 13.08%
  • Total return: 15.15%

NEXJ SYSTEMS (NXJ.TO)

  • Then: $4.61
  • Now: $3.12
  • Return: -32.32%
  • Total return: -32.32%

Total return average: -9.98%

 

DISCLOSURE PERSONAL FAMILY PORTFOLIO/FUND
L N N N
NFI Y Y Y
NXJ N N N

 WEBSITE: selectiveasset.com