David Burrows, President and Chief Investment Strategist, Barometer Capital Management

FOCUS: North American large caps

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MARKET OUTLOOK

The Barometer investment team believes that the rate cycle has bottomed and that there is the beginning of a rotation from fixed income and credit into equities that is likely to last years. While this could cause some volatility across asset classes in the short run, it is constructive and should ultimately be supportive for equities, which are currently under-owned relative to fixed income.

Economic data in the U.S. and emerging markets is slowly improving, earning revisions are improving and despite consensus bearishness in many market strategists’ asset allocations, breadth in equity markets is proving extremely resilient.

From a sector perspective. financials, tech and industrials benefit from an improving economy and are more economically sensitive, while bond proxy sectors such as utilities, REITs and telcos are likely to be seen as sources of funds.

Top Picks

Texas Instruments Inc. (TXN.O)

Most recent purchase: July 19 at $64.98

Oclaro (OCLR.O)

Most recent purchase: September 6 at $8.58

Seven Generations Energy (VII.TO)

Most recent purchase: August 11 at $28.50

 

Disclosure Personal Family Portfolio/Fund
TXN Y Y Y
OCLR Y Y Y
VII Y Y Y

 

Past Picks: September 29, 2015

Royal Caribbean Cruises (RCL.N)

  • Then: $85.85
  • Now: $67.04
  • Return: -21.91%
  • TR: -20.78%

Amazon.com (AMZN.O)

  • Then: $496.07
  • Now: $760.03
  • Return: +53.21%
  • TR: +53.21%

Martin Marietta Materials (MLM.N)

  • Then: $148.37
  • Now: $178.92
  • Return: +20.59%
  • TR: +21.75%

Total Return Average: +18.06%

 

Disclosure Personal Family Portfolio/Fund
RCL N N N
AMZN Y Y Y
MLM Y Y Y

 

Fund Profile: Barometer Global Macro Pool

Performance as of: August 31, 2016

  • 1 month: Fund -0.9%, Index* 0.5%
  • 1 year: Fund 16.1%, Index* 3.5%
  • 3 year: Fund 16.9%, Index* 4.9%

* Index: Globefund Peer Group Average

* Based on reinvested dividends and net of fees

 

Top 5 Holdings

  1. Vanguard Industrial ETF (VIS.US) - 6.57%
  2. Global X Funds (SOCL.US) - 6.38%
  3. SPDR S&P Oil & Gas Explor & Prod ETF (XOP.US) - 6.21%
  4. iShares Dow Jones US Brok-Dea. Ind. ETF (IAI.US) - 5.78%
  5. First Trust Exchange Traded Fund II (SKYY.O) - 5.60%

 

Twitter: @barometerca

Website: barometercapital.ca