Cole Kachur, portfolio manager and senior investment manager at Wellington-Altus Private Wealth

FOCUS: North American stocks, ETFs

MARKET OUTLOOK:

With the recent market run-up, we are in a similar position to where we were last July 21 when I was on Market Call. Markets have likely overextended a bit and in the short term, might be ready for an intermediate pullback. For medium and long-term investors, the bull market is fully intact and any pullback should be used as an opportunity to buy quality individual stocks or ETFs. We would tilt our exposure towards high-growth securities as a declining inflationary and interest rate environment usually provides for outperformance from technology and growth-oriented investments.

• Sign up for the Market Call Top Picks newsletter at bnnbloomberg.ca/subscribe
• Listen to the Market Call podcast on iHeart, or wherever you get your podcasts

TOP PICKS:

iShares U.S. Small Cap Index ETF (XSU TSX)

Similar to IWM but on the Canadian market, in Canadian currency, this investment will provide exposure to a diversified market of small-cap stocks. While technology names will likely continue to lead markets forward, we have seen a pickup in market breadth and this should help push this small-cap ETF higher.  

Apple (AAPL NASD)

Due to declining market share in China, Apple stock has come down significantly from its most recent highs at the end of December. The stock is oversold and historically, purchasing when the stock has been extremely oversold has worked well for long-term investors. Apple has underperformed on both a relative and absolute basis, but we still believe it is one of the best companies to own. There is potential for the stock to continue to slide down, but I would use any short-term weakness as an opportunity to continue to build a position. Apple is one of the few large technology companies that hasn’t highlighted their AI plans but we expect that this will be a catalyst for the stock moving forward.  

Alphabet (GOOG NASD)

Similar to Apple, Google stock has underperformed on both a relative and absolute basis. With the stock down around 15 per cent from its most recent high, we feel that long-term investors can start to build or add to a position and see great growth on a core holding.

PAST PICKS: JULY 21, 2023

Advanced Micro Devices (AMD NASD)

Then: US$110.95
Now: US$209.60
Return: 89 per cent
Total Return: 89 per cent

Amazon.com (AMZN NASD)

Then: US$130.00
Now: US$174.37
Return: 34 per cent
Total Return: 34 per cent

iShares Russell 2000 ETF (IWM NYSEARCA)

Then: US$194.46
Now: US$207.30
Return: 7 per cent
Total Return: 7 per cent

Total Return Average: 43 per cent