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bnn market call

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.

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