John Stephenson is president & CEO of Stephenson & Company. His focus is North American equities.
Top Picks:
Bank of America (BAC.N)
Last purchased on September 29, 2015 at $15.32
- Significant leverage to the U.S. economy
- Inexpensive
- Capital return
MetLife (MET.N)
Last purchased on October 2, 2015 at $45.88
- Diversified lines of business
- Well-positioned to benefit from the rise in interest rates
- Inexpensive
- Cash earnings are accelerating
Walt Disney (DIS.N)
Last Purchased on October 28, 2015
- Two big catalysts: Star Wars relaunch and a theme park in China
- Best of breed player in large-cap media
- Premier core media franchises
Past Picks: November 25, 2014
Element Financial (EFN.TO)
Then: $14.76 Now: $17.50 +18.56% Total return: +18.56%
Apple (AAPL.O)
Then: $117.60 Now: $114.18 -2.91% Total return: -1.26%
*Short* Newmont Mining (NEM.N)
Then: $19.71 Now: $17.63 +10.55% Total return: +10.10%
Total Return Average: +9.13%
Market outlook:
While we still have many more years of strong equity performance, investors should consider a more defensive stance. Stock valuations are high, corporations are having trouble sustaining earnings growth, manufacturing is in a slump, oil is down and the U.S. dollar remains strong. In this environment equities will struggle.