Jul 12, 2019
Bruce Campbell's Top Picks: July 12, 2019
BNN Bloomberg
Full episode: Market Call for Friday, July 12, 2019
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Bruce Campbell, chairman at Campbell, Lee & Ross
Focus: Canadian large caps
MARKET OUTLOOK
After a solid recovery in the first six months of the year, markets should flatten out over the summer months as trade tensions and economic numbers in the American economy are decidedly mixed. Durable goods and housing are particularly soft.
It appears the Fed will lower rates in the next two weeks while the Bank of Canada will remain on hold. Yield and defensiveness should now play a part in portfolios going forward. We think there are pockets of value around in Canada and the U.S. markets in specific sectors. Financials, healthcare and special situations hold the most appeal.
TOP PICKS
ENBRIDGE (ENB.TO)
Enbridge has lagged TC Energy materially due to some Line 3 problems and reversion to the mean over time is likely. You get paid over 6 per cent and growing while you wait.
MANULIFE (MFC.TO)
Compelling valuation near 10 times price-to-earnings with growth of earnings and dividends make this an easy choice despite a recent bounce of a couple of dollars.
VISA (V.N)
A true growth story, albeit not cheap. We think the earnings growth remains outside North America as they integrate the Euro Visa assets. Still a few years to go before it slows.
| DISCLOSURE | PERSONAL | FAMILY | PORTFOLIO/FUND |
|---|---|---|---|
| ENB | Y | Y | Y |
| MFC | Y | Y | Y |
| V | Y | Y | Y |
PAST PICKS: JUNE 26, 2018
BANK OF NOVA SCOTIA (BNS.TO)
- Then: $75.72
- Now: $70.07
- Return: -7%
- Total return: -2%
HUDBAY MINERALS (HBM.TO)
- Then: $7.55
- Now: $6.52
- Return: -14%
- Total return: -13%
ALGONQUIN POWER (AQN.TO)
- Then: $12.85
- Now: $16.20
- Return: 26%
- Total return: 34%
Total return average: 6%
| DISCLOSURE | PERSONAL | FAMILY | PORTFOLIO/FUND |
|---|---|---|---|
| BNS | Y | Y | Y |
| HBM | N | N | N |
| AQN | Y | Y | Y |
