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Christine Poole.

Christine Poole is CEO and managing director, GlobeInvest Capital Management. Her focus is North American large caps.

Top Picks:

Loblaw (L.TO)

Recently purchased at the $63.40 level in June 2015

Loblaw is Canada's largest grocery retailer offering consumers multiple formats and is the leading national drugstore operator through Shoppers Drug Mart. Operational efficiencies from its store renovation program and IT/supply chain investments as well as synergies arising from the Shoppers' acquisition will drive margin improvement and cash flow growth. Loblaw also benefits from the current environment of lower energy prices and moderating grocery square footage growth. Loblaw provides a current yield of 1.4 per cent.

Home Depot (HD.N)

Recently purchased at the $111 level in June 2015

Home Depot is the leading home improvement specialty retailer with 2,270 stores covering the U.S. (87 per cent of stores), Canada (8 per cent) and Mexico (5 per cent). Its business benefits from the cyclical recovery in the U.S. housing market, improving employment and rising consumer confidence. Private fixed residential investment as a share of GDP remains below the historical average. Ongoing initiatives to increase store and supply chain productivity provide additional operating leverage. HD has a proven track record of consistently reducing share count and raising dividends, as evidenced by a 26-per-cent increase in its dividend in February 2015, providing investors with a yield of 2.1 per cent.

Mondelez (MDLZ.O)

Recently purchased at the $42.90 in August 2015

MDLZ is the global snacking leader with #1 global share in biscuits, chocolate and candy as well as #2 in gum. Its long-term earnings power is supported by an attractive demographic footprint with 44 per cent of revenues from emerging markets where the number of middle income households is expected to double over the next eight years. Per capita consumption of confectionery and biscuits in developing countries are significantly below that of developed countries. Increasing income levels drives demand within snacking categories. Mondelez provides investors with a dividend yield of 1.6 per cent.

Past Picks: September 9, 2014

Manulife (MFC.TO)

Then: $22.00 Now: $20.48 -6.91% Total return: -4.16%

Yum! Brands (YUM.N)

Then: $72.07 Now: $81.02 +12.42% Total return: +14.87%

Emerson Electric (EMR.N)

Then: $65.11 Now: $46.52 -28.55% Total return: -26.18%

Total Return Average: -5.16%

Market outlook:

The recent sharp pull back in global equity markets was arguably overdue. A weakening Chinese economy was the primary catalyst, escalating to fears of contagion to other emerging markets and ultimately to the global economy. Economic data and indicators suggest developed markets, especially the U.S., can decouple from developing markets.

Underlying economic fundamentals remain positive in the U.S., showing minimal signs of a recession on the horizon. The labour market is robust, with the unemployment rate at 5.1 per cent, the lowest since April 2008, the housing industry continues on an upward trend, consumer sentiment is healthy and while slower in recent months, manufacturing & services activity remain in expansionary territory. The welfare of the U.S. consumer is the main driver of the U.S. economy since 70 per cent of the U.S. domestic economy is attributable to consumer spending. The U.S. economy is relatively less reliant on exports, which represent only 13.5 per cent of U.S. GDP.

The Canadian economy is expected to improve in the latter half when the positive impacts of a low Canadian dollar and healthy U.S. economy are felt. Recent employment and trade data were encouraging and supportive of a rebound in economic activity later in the year.

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