Sep 13, 2016
David Burrows' Top Picks: September 13, 2016
BNN Bloomberg
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
- Vanguard Industrial ETF (VIS.US) - 6.57%
- Global X Funds (SOCL.US) - 6.38%
- SPDR S&P Oil & Gas Explor & Prod ETF (XOP.US) - 6.21%
- iShares Dow Jones US Brok-Dea. Ind. ETF (IAI.US) - 5.78%
- First Trust Exchange Traded Fund II (SKYY.O) - 5.60%
Twitter: @barometerca
Website: barometercapital.ca