Greg Newman, director and portfolio manager at Scotia Wealth Management 
Focus: North American dividend stocks and protection strategies

MARKET OUTLOOK

Slowing growth, tighter financial conditions, trade woes and end-of-cycle fears have given way to a FOMO (fear of missing out) rally this January. I do believe investors are embracing the better view, as they now appear more optimistic.

Regarding China, I believe enough progress is the more likely outcome –  at least directionally – to keep most of the serious trade fallout at bay. There's also some recent positive overtures with Europe.

For Canada, better news regarding shipping more oil to market are probably coming soon, which I believe should be an important catalyst for the TSX.

All of this helps add up to a glass that is more than half full, combined with more sober valuations and a more patient Federal Reserve. Buy stocks that are cheaper than their peers, that have catalysts and with a preference for those that pay you to wait and are able to increase those payouts over time.

TOP PICKS

ALPHABET (GOOG.O)

Alphabet continues to provide investors strong visible growth at a reasonable valuation. Buy this quality name while it's still on sale.

BROOKFIELD INFRASTRUCTURE PARTNERS (BIP_u.TO)

Brookfield Infrastructure offers investors strong growth combined with an attractive and growing yield. Buy this defensive and high-growth name while it is still on sale.

BANK OF AMERICA (BAC.N)

This bank offers investors attractive growth at a very attractive valuation. Buy this quality stock while it is still on sale.

PAST PICKS: JAN. 26, 2018

NATIONAL BANK (NA.TO)

• Then: $64.51
• Now: $60.74
• Return: -6%
• Total return: -2%

STANTEC (STN.TO)

• Then: $35.02
• Now: $31.16
• Return: -11%
• Total return: -9%

SHOPIFY (SHOP.TO)

• Then: $159.07
• Now: $210.55
• Return: 32%
• Total return: 32%

Total return average: 7%

WEBSITE: www.newmangroup.ca