Robert McWhirter, president of Selective Asset Management
Focus: Canadian dividend and small-cap stocks

MARKET OUTLOOK

Last week Merrill Lynch quantitative strategist Savita Subramanian wrote that U.S. stocks are very attractive relative to bonds because the yield on the S&P 500 Composite Index is above the U.S. 10-year bond yield. Historically, 94 per cent of the time this has occurred stocks outperformed bonds by 23 per cent over the next 12 months.

This “buy stocks” strategy is supported from a technical analysis perspective. On Oct. 16, Eight Capital’s Tina Normann wrote that the first S&P 500 monthly moving average convergence/divergence (MACD) buy signal since 2016 suggests the 19-month high basing pattern should sustain well into 2020 and that there’s upside towards 4,000. This implies an over 30 per cent upside from the S&P from the Oct. 18 close.

Tina also expects copper and copper stocks will benefit from rising interest rates. We expect North American equities will move higher over the coming year.

TOP PICKS

Robert McWhirter's Top Picks

Robert McWhirter, president of Selective Asset Management, discusses his top picks: Magna International, Empire Company and Boyd Group Income Fund.

MAGNA INTERNATIONAL (MG:CT)

Magna is a global automotive supplier with over 320 manufacturing operations and approximately 100 product development, engineering and sales centers in over 30 countries. While not currently held, it is a candidate for purchasing into our Canadian Dividend Strategy.

EMPIRE COMPANY (EMP/A:CT)

Empire is engaged in the business of food retailing and related real estate. The company owns, affiliates or franchises over 1,500 stores under Sobeys, Safeway, IGA, Foodland, FreshCo, Thrifty Foods and Lawton's Drug Stores, as well as more than 350 retail fuel locations. It is a stock currently held in our Canadian Dividend Strategy.

BOYD GROUP INCOME FUND (BYD-U:CT)

Boyd provides auto body and auto glass repair services across North America. While not currently held, it is a candidate for purchasing into our Canadian Dividend Strategy.

 

DISCLOSURE PERSONAL FAMILY PORTFOLIO/FUND
MG N N N
EMP Y Y N
BYD-U Y Y Y

 

PAST PICKS: DEC. 28, 2018

Robert McWhirter's Past Picks

Robert McWhirter, president of Selective Asset Management, discusses his past picks: Kirkland Lake Gold, Rogers Communications and Quebecor.

KIRKLAND LAKE GOLD (KL:CT)

  • Then: $34.45
  • Now: $59.25
  • Return: 72%
  • Total return: 72%

ROGERS COMMUNICATIONS (RCI/B :CT)

  • Then: $69.95
  • Now: $65.75
  • Return: -6%
  • Total return: -4%

QUEBECOR (QBR/B:CT)

  • Then: $28.59
  • Now: $30.72
  • Return: 7%
  • Total return: 8%

Total return average: 25%

 

DISCLOSURE PERSONAL FAMILY PORTFOLIO/FUND
KL Y Y Y
RCI/B N N N
QBR/B N N Y

 

WEBSITE: selectiveasset.com