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Stephen Takacsy, chief investment officer and portfolio manager, Lester Asset Management
FOCUS: Canadian Equities
As we have mentioned time and time again, interest rates are remaining lower for longer, and many central banks around the world continue to cut rates in order to provide needed monetary stimulus to revive their economies and fight deflationary forces.
China is laying off millions of people in an effort to shutter money losing businesses while trying to contain a credit crisis caused by decades of reckless bank lending, and at the same time trying to attain 6 to 7 percent GDP growth.
This has affected many emerging market economies and resource rich countries like Canada which has also been hit by an all-out price war led by Saudi Arabia. The U.S. Federal Reserve is therefore proceeding cautiously in normalizing rates for fear of propelling the US dollar higher and destabilizing world currencies.
We continue to hold 25 percent of our portfolio in utility-like dividend stocks (Renewable energy, power and telecom), complemented by large cap value stocks and small/mid cap stocks which are growing in North America and should remain largely unaffected by the global slowdown. This is a stock pickers market.
Top Picks
Andrew Peller
Logistec
Ten Peaks Coffee
Click here for more information on Stephen Takacsy's top and past picks
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