Cole Kachur, associate portfolio manager at Scotia Wealth Management

Focus: Canadian equities
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MARKET OUTLOOK
We are in the later innings of a bull market, but I believe that the Canadian market will continue to grind higher based on an improvement in the energy sector and a rebound in gold and some other commodities. There will be periods of volatility as investors digest economic information, the presidential election, future OPEC meetings and interest-rate talk coming from the Fed. We have been more active in the market over the past couple of months and will continually look for opportunities to rebalance and better position our clients.

We are watching oil closely. If it can get over a major technical resistance point at $51.67, we will adjust our portfolios to reflect a continued move in oil prices. At that point we would employ a barbell approach with our equity positions, as we are looking to go heavier into cyclicals on one end and adding some yield through dividend-paying blue chips on the other end. We are looking for stocks that are in an uptrend and screen well from a fundamental and technical analysis perspective.

TOP PICKS

MANULIFE FINANCIAL (MFC.TO)
I think the Canadian insurance companies will benefit from rising yields and improving market fundamentals. It pays a good dividend (around 3.8 per cent) and I expect the stock to move into the low-to mid-20s. Insurance companies have underperformed banks, but I think some of that gap will be made up.

INTERTAPE POLYMER (ITP.TO)
Not a well-known company, but it is a market leader in plastics, tapes and packaging materials. They have a growth plan in place to double revenues in the next seven years. Pays a good dividend and is a solid company to get income and growth from.

BOMBARDIER (BBDb.TO)
This is a higher-risk investment and suitable to those looking at the longer term. It's a turnaround story, with improvements in their operating and margins. I feel the management team is in place to turn the company around and to provide shareholder value.
 

WEBSITE: www.colekachur.ca