Greg Newman, senior wealth advisor, director and portfolio manager at Newman Group, Scotia Wealth Management

Focus: Canadian dividend stocks and protection strategies
_______________________________________________________________

MARKET OUTLOOK
The prospect of lower taxes, repatriating capital, less bank regulations and fiscal stimulus has the markets on the move. While a return to a more right-wing government is partly responsible, much of the rally, I believe, is due to the fact that there is now a more united U.S. government that has better potential to act.

Bernanke, Yellen, Draghi — the heavyweights in the room in terms of understanding the challenges — have long opined that central banks are not sufficient on their own to respond and that fiscal action is also necessary. Markets are now cheering that opportunity. Follow the yield curve for cadence as to where value is. If rates overshoot, there will be an opportunity in yield proxies. Otherwise, continue to look for opportune moments to invest in banks, insurers and other reflation sectors.

TOP PICKS

MAGNA INTERNATIONAL (MG.TO)
Magna offers investors an attractive growth profile yet trades at a very compelling valuation. Enjoy a nice dividend until the market recognizes this again.

CARA OPERATIONS (CARA.TO)
Cara offers investors an attractive growth profile from a combination of new store openings, menu innovation, digital initiatives and acquisition synergies. Buy this name while it trades at a sizeable discount to its peers.

SCOTIABANK (BNS.TO)
Scotiabank offers investors an attractive capital ratio and an attractive potential growth rate relative to its peers, yet still trades at a discount. Enjoy an attractive and safe dividend while the stock plays catch up.
 

DISCLOSURE PERSONAL FAMILY PORTFOLIO/FUND
MG Y Y Y
CARA Y Y Y
BNS Y Y Y


PAST PICKS: MARCH 31, 2016

CANADIAN PACIFIC RAILWAY (CP.TO)

  • Then: $172.55
  • Now: $206.16
  • Return: +19.47%
  • TR: +20.14%

MAGNA INTERNATIONAL (MG.TO)

  • Then: $55.83
  • Now: $61.88
  • Return: +10.83%
  • TR: +12.90%

INTACT FINANCIAL (IFC.TO)

  • Then: $90.93
  • Now: $92.36
  • Return: +1.57%
  • TR: +2.87%

TOTAL RETURN AVERAGE: +11.97%
 

DISCLOSURE PERSONAL FAMILY PORTFOLIO/FUND
CP Y Y Y
MG Y Y Y
IFC Y Y Y


WEBSITE: www.newmangroup.ca