Rick Stuchberry, portfolio manager at Wellington-Altus Private Wealth
Focus: Canadian large caps and international ADRs
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MARKET OUTLOOK

Markets continue to surprise to the upside, and from a positive stance it appears to be adding breadth, not simply watching few stocks push to new highs. So many are hating the rally and our constant reasoning remains that capital will flow to where it earns the greatest return. With cash and bonds offering very little, it must flow to stocks, and the rally will likely persist until this flow of money stops.

We have seen a remarkable rally in some stocks that have been completely forgotten by the markets like General Motors. These rallies are impossible to forsee, but nevertheless positive. General Motors was trading at an incredibly cheap price due to what we believed was an increase in utilization of cars due to ride sharing and future automation, yet the stock's rally barely brings GM in line with a market valuation.

TOP PICKS

ING GROEP (ING.N)
We believe interest rates globally will move higher over the next several years, and investors should own financials as a key piece of their portfolio. Venturing outside Canada, we really like ING for their forward-thinking technology strategy and focus on distinct, strong European markets. The have a steady dividend and a strategy to grow going into 2020.

ROYAL BANK OF CANADA (RY.TO)
We took a small profit at $98 in the spring and after two interest rate hikes by the bank of Canada, the stock was $7 lower than when we sold it. We purchased our sold stock and allocated a bit more into the name. A leading franchise in Canada, profitable global business, a great dividend and upside based on the leading spread all bode well for RBC’s future.

SPIN MASTER (TOY.TO)
Despite the bankruptcy of Toys “R” Us, Spin Master continues to see sales increase through other distribution methods. Their content and balance sheet are strong, and we continue to see positive demographic tailwinds to complement their strong execution.
 

DISCLOSURE PERSONAL FAMILY PORTFOLIO/FUND
ING Y Y Y
RY Y Y Y
TOY Y Y Y

PAST PICKS: SEPTEMBER 14, 2016

HOME DEPOT (HD.N)

  • Then: $126.26
  • Now: $165.68
  • Return: 31.22%
  • Total return: 34.28%

NIKE (NKE.N)

  • Then: $55.13
  • Now: $53.76
  • Return: -2.48%
  • Total return: -1.16%

ING GROEP (ING.N)

  • Then: $12.17
  • Now: $18.57
  • Return: 52.58%
  • Total return: 59.36%

TOTAL RETURN AVERAGE: 30.82%
 

DISCLOSURE PERSONAL FAMILY PORTFOLIO/FUND
HD Y Y Y
NKE Y Y Y
ING Y Y Y

FUND PROFILE
Progressive Value Approach
Performance as of: September 30, 2017

1 Year: 15.9% equity, 15.6% balanced, 9.2% index
3 Year: 7.7% equity, 6.8% balanced, 4.5% index

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TWITTER: @stuchberrygroup
WEBSITE: www.wellington-altus.ca