Greg Newman, senior wealth advisor and portfolio manager, Newman Group, ScotiaMcLeod

FOCUS: North American stocks and protection strategies 

MARKET OUTLOOK:

Many continue to call for caution while believing a recession to be around the corner. Yet, bond yields continue to fall and equities continue to gain so far this year. Earnings expectations are still constructive and the labour market is still strong. The bears argue that the lag effects of the steep rate hikes will start to work their way through and that inflation, although benign today, will be an unknown going concern for some time. Additionally, that bank lending will be lower because of the inverted yield curve and the deposit situation of the U.S. regional banks.

It is a close call, and so for months, we have been advocating being neither underweight nor overweight in equities regarding your asset allocation. That said, this morning’s U.S. consumer price index combined with the recent bank concerns will likely mean that the U.S. Federal Reserve is nearing a pause. Use the bumpiness to continue to accumulate good stocks that will flourish in the next bull market.

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TOP PICKS:

First Quantum Minerals (FM TSX)

First Quantum Minerals offers investors high growth at a reasonable price.

Bank of America (BAC NYSE)

Bank of America offers investors solid growth at a compelling price.

Altagas (ALA TSX)

Altagas offers investors solid growth at a very fair price.

PAST PICKS: March 23, 2022

Exchange Income (EIF TSX)

• Then: $42.10
• Now: $54.06
• Return: 28%
• Total Return: 36%

Gibson Energy (GEI TSX)

• Then: $25.50
• Now: $22.53
• Return: -12%
• Total Return: -4%

Chorus Aviation (CHR TSX)

• Then: $4.15
• Now: $3.16
• Return: -24%
• Total Return: -24%

Total Return Average: 3%