Stan Wong is vice-president and portfolio manager with Macquarie Private Wealth. His focus is on North American large cap stocks and exchange traded funds.
Cisco is expected to benefit from continued growth in network traffic and bandwidth usage. Looking at the charts, the stock has also recently exhibited some very positive technical signals. At a reasonable valuation and solid expected earnings growth rate, Cisco should be a strong relative performer within the technology sector.
MasterCard is a leading global payment solutions company and boasts one of the most recognized global brands. MasterCard’s strong earnings momentum should continue with international expansion, a resilient consumer and growth in prepaid cards. With an estimated long-term annual earnings growth forecast of over 18 per cent, MasterCard offers a compelling growth opportunity.
iShares Emerging Markets ETF
After underperforming in 2011, emerging markets are set to outpace developed markets this year. With an overall price-to-earnings multiple of 11 times, emerging market equities are trading at a significant discount to their historical 5-year average of 14 times. As well, easing monetary and falling inflation in key emerging markets should act as positive equity catalysts.
Past Picks: Jan. 13, 2011
Then: $ 17.36
Total Return: -28.49%
Total Return: -30.70%
Sprott Physical Silver Trust
Total Return: +9.32%
Total Return Average: -16.62%
After a five-week advance, equity markets appear overbought from a technical perspective over the near term. However, a combination of improving U.S. economic data, further containment of the euro zone debt crisis and evidence of a soft economic landing in China has set the stage for a positive year for equity markets. As the macroeconomic picture improves over the course of 2012, we expect cyclical stocks to regain leadership over defensive stocks and emerging markets to outperform developed markets. As well, growth stocks are expected to continue outperforming value stocks.
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Compiled by Franklin Cameron, BNN Market Call Tonight
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- Cisco Systems Inc$30.18+0.08(+0.27%)
- MasterCard Inc$109.72-0.25(-0.22%)
- iShares MSCI Emerging Markets ETF$36.69+0.27(+0.73%)
- Manulife Financial Corp$24.86-0.01(-0.04%)
- Mosaic Co$31.34+0.06(+0.19%)
- Sprott Physical Silver Trust$6.55+0.01(+0.22%)
- Updated January 23 9:45 AM -5GMT. Delayed by at least 15 minutes.