Charles Lannon, partner and director of research, Toron AMI International Asset Management

FOCUS: Global Equities

Market outlook:

Despite the multiyear bull market run, the outlook for stocks remains favorable because global economic growth is accelerating and valuations are reasonable, if no longer cheap. Key contributors to global GDP – the U.S., the Eurozone and Japan should all enjoy faster growth in 2015 than they did in 2014. The only major economic constituent that is slowing is China, and even there growth should be nearly 7 percent. China’s decelerating growth, to the extent to which it is the catalyst for unwinding the commodity bubble, could probably even be viewed as a net positive to global growth!

However, there will however be inevitable bouts of volatility, and these bouts may be triggered by rising (or the fear of rising) U.S. short term rates, European political acrimony, and Middle East geopolitical issues. Regardless, investors should understand that the reason stocks outperform bonds, cash and other asset classes is that over time they are compensated for accepting this volatility.

Top picks:

KDDI Corp (9433 JY)
Svenska Cellulosa AB (SCAb.ST)
Whistler Blackcomb Holdings (WB.TO)