Nick Majendie, senior portfolio manager, Scotia Wealth Management
Focus: Canadian large caps
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MARKET OUTLOOK
After being the best performing of all developed equity markets in the world in 2016, the TSX has been a serious laggard in 2017 – largely as a result of the energy sector– like energy stocks in the U.S. but more so –and disappointing performance by the financial sector despite good results. Consequently, the TSX has lagged the S&P 500 by just over twelve per cent year-to-date. However, for a Canadian investor, the increase of over ten per cent in the value of the Canadian versus the U.S. dollar year-to-date, means that the difference in currency adjusted terms is barely two per cent. 

We also believe that global oil inventories are declining at a greater pace than most investors realize. If the oil price firms as we expect over the next three to six months, we believe the scene is set for a change to outperformance by the TSX relative to the S&P 500. Also, valuations for Canadian stocks are at a significant discount to U.S. stocks.

TOP PICKS

METHANEX (MX.TO)

YAMANA GOLD (YRI.TO)

PEYTO EXPLORATION AND DEVELOPMENT (PEY.TO)

 

DISCLOSURE PERSONAL FAMILY PORTFOLIO/FUND
 MX Y Y Y
YRI Y  Y Y
PEY Y Y Y

 
PAST PICKS

BROOKFIELD INFRASTRUCTURE PARTNERS (BIP_U.TO)

  • Then: $43.92
  • Now: $53.76
  • Return: 22.40%
  • Total return: 27.94%

ENBRIDGE (ENB.TO)

  • Then: $57.91
  • Now: $50.60
  • Return: -12.62%
  • Total return: -8.80%

METHANAX (MX.TO)​

  • Then: $39.69
  • Now: $64.71
  • Return: 63.03%
  • Total return: 67.16%

TOTAL AVERAGE RETURN: 28.76%
 

DISCLOSURE PERSONAL FAMILY PORTFOLIO/FUND
BIP_U Y Y Y
ENB  Y Y Y
MX Y Y Y


 WEBSITE: www.forthbridge.ca