Market Call Tonight for Wednesday, April 19, 2017
Bruce Murray, CEO and CIO of The Murray Wealth Group
Focus: Large cap growth and dividend stocks
For the first time in over a decade, the major economies of the Western world are operating in a coordinated, healthy economic environment. Both the U.S. and Germany are near full employment, with Germany’s unemployment now well below four per cent and U.S. unemployment now at 4.5 per cent. This is leading to current wage growth of well over two per cent in the U.S. The emerging markets are also expected to continue to do well, with Chinese growth of over six per cent and Indian growth even higher.
As a result, global markets have improved, reflecting this outlook and the potential for investor-friendly legislation in the U.S. Strong earnings growth of about 10 per cent is expected as corporates report Q1 results over the next month, led by oil producers and financial companies.
Outlook remains favourable with some concerns over valuation. The Murray Wealth Group will continue to focus on secularly strong growth companies and be mindful of valuation and debt leverage.
PAST PICKS: MAY 13, 2016
Alphabet is still the largest holding in the portfolio at six per cent. Some small trading actions, both buy and sell, but net holding is larger than in May. Target price of US$1,000 likely to be raised in next few months.
- Then: $724.83
- Now: $856.51
- Return: +18.16%
- TR: +18.16%
Reduced holding in Mastercard by 16 per cent due to price appreciation and it closing to under 10 per cent of our US$123 target price, but still makes up four per cent of the portfolio.
- Then: $95.36
- Now: $112.29
- Return: +17.75%
- TR: +18.70%
Medtronic was increased from three per cent to 4.5 per cent of the portfolio in late November on a disappointing earnings result. Some sales had occurred when it neared our $85 target.
- Then: $80.71
- Now: $80.32
- Return: -0.48%
- TR: +1.64%
TOTAL RETURN AVERAGE: +12.83%
FUND PROFILE: TMWG GLOBAL EQUITY GROWTH
Focus: Large cap developed market growth companies
PERFORMANCE AS OF March 31, 2017:
- 1 quarter: Fund 6.7%, Index N/A
- 1 year: Fund 18.7%, Index N/A
- 3 years: Fund N/A, Index N/A
TOP HOLDINGS AND WEIGHTINGS
- Celgene: 5.1%
- Facebook: 4.6%
- TD Bank: 4.3%
- Microsoft: 4.1%