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

FOCUS: North American stocks  

MARKET OUTLOOK:

What a brutal sell-off. The chief culprit – the whole bond complex – has had massive moves over the last handful of weeks. As yields race higher, three concerns emerge. First, investors fear the implications to corporate balance sheets and margins. Second, as yields rise, the demand for stocks shrinks. Third, investors fear that perhaps these latest rate increases could finally tip the economy. Yet for all these worries, the job market, the economy and analyst earnings estimates are still supportive of a soft landing scenario which eventually should be good for stocks. Given this degree of heightened uncertainty, a healthy amount of defence and offence is prudent. As such we are staying on our asset allocation.
 

• Sign up for the Market Call Top Picks newsletter at bnnbloomberg.ca/subscribe
• Listen to the Market Call podcast on iHeart, or wherever you get your podcasts

TOP PICKS:

AltaGas (ALA TSX)

It offers investors nice growth at an attractive price with a healthy and growing dividend.

BMO NASDAQ 100 Hedged to CAD ETF (ZQQ TSX)

It offers investors exciting growth over time while priced at a reasonable level.

1-YR annual GICs

It offers investors a low-risk way of achieving a decent return over one year. 

PAST PICKS: September 14, 2022

BCE (BCE TSX)

• Then: $61.09
• Now: $49.95
• Return: -18%
• Total Return: -13%

TC Energy (TRP TSX)

• Then: $63.81
• Now: $45.02
• Return: -29%
• Total Return: -23%

Crombie REIT (CRR.UN TSX)

• Then: $15.76
• Now: $11.94
• Return: -24%
• Total Return: -19%

Total Return Average: -18%