Full episode: Market Call for Tuesday, July 11, 2017
Brian Acker, president, CEO and chief investment strategist at Acker Finley
Focus: North American large caps
We believe we are in the middle stages of a secular bull market in the U.S. dollar (now in its fourth year since I first started mentioning this on BNN). This will ignite rates of return of all U.S. assets including equities, real estate, etc.
According to Model Price metrics, we believe the S&P 500 has a fair value of 3,007 — that’s 24 per cent higher than this index is trading at today. And 12 months from June 1 fair value will be 3,475, assuming current earnings estimates.
For a value manager, like us, there are many discarded, unloved, and broken-down growth-story stocks to choose from. If the U.S. economy can struggle along here, or God forbid accelerates, these value names would produce, in our opinion, great rate of returns.
I and family own Apple through the Acker Finley funds. Last purchased on June 28, 2013 at US$56.40. Model Price is $184.29 representing an upside of 28 per cent.
I and family own Citigroup through the Acker Finley funds. Last purchased on June 29, 2017 at US$67.15. Model Price is $66.84 representing no real upside but big potential for dividend increases.
I and family own MET through the Acker Finley funds. Last purchased on February 28, 2017 at US$52.58. Model Price is $73.24 representing an upside of 30 per cent.
PAST PICKS: APRIL 14, 2016
GILEAD SCIENCES (GILD.O)
- Then: $98.19
- Now: $68.84
- Return: -29.89%
- TR: -27.50%
GENERAL ELECTRIC (GE.N)
- Then: $31.02
- Now: $26.09
- Return: -15.89%
- TR: -12.55%
- Then: $112.10
- Now: $144.85
- Return: +29.21%
- TR: +32.48%
TOTAL RETURN AVERAGE: -2.52%
FUND PROFILE: ACKER FINLEY SELECT US VALUE 50 F
PERFORMANCE AS OF MAY 31 2017:
- 1 month; Fund -0.65%, Index* 0.18%
- 1 year: Fund 17.49%, Index* 21.29%
- 3 years: Fund 12.42%, Index* 18.45%
* Index: S&P 500 Total Rate of Returns in Canadian dollars
TOP HOLDINGS AND WEIGHTINGS
- Apple: 5.6%
- Metlife: 4.8%
- Union Pacific: 4.7%
- Honeywell: 4.5%
- Eastman Chemical: 4.5%