Mike Newton is associate director and portfolio manager of Macquarie Private Wealth. His focus is on North American equities and ETFs
Top Picks:
Ancestory.com
We have Facebook for the younger set, LinkedIn for the professional crowd and we have Ancestry.com for the retired crowd. One could say its social media for dead people. It is also the backbone of a prime-time show on network television.
Starbucks
Starbucks' increasing push into fast-growing overseas markets should provide catalysts for upward earnings, as does continued product innovation in the domestic market. Despite a wobbly economy, Starbucks has managed to maintain high price points without a decrease in demand.
Canadian Natural Resources
We have a positive outlook for oil driven by emerging market growth and strong global diesel demand. Names with near-term growth, free cash flow, and the potential for increased dividends on crude strength are favoured and CNQ in one such name.
Past Picks: Jan. 31, 2011
Barrick Gold
Then: $47.47
Now: $49.62
Total return: +5.61%
Pengrowth Energy
Then: $12.62
Now: $9.99
Total return: -14.81%
Halliburton Company
Then: $45.00
Now: $37.03
Total return: -17.03%
Total Return Average: -8.74%
OUTLOOK
Global markets have basically been in a straight line up since the calendar changed. Last year any optimism on the individual stock side was being overshadowed by issues with extreme correlation to macro events, but now I am seeing this correlation decline. Officially our firm is expecting a great first half, but that is all we are prepared to lend ourselves to with this bullish stance. Investors must not get complacent about the next downturn. If the market continues higher in the near term and we don't see a pullback, simply move your stop limits up and let shares run. Lastly, investors should keep an eye on China and pay special attention to its role as the relentless engine of global growth.
Compiled by Franklin Cameron, BNN Market Call Tonight
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