John DeGoey is portfolio manager, Industrial Alliance Securities. His focus is personal finance and ETFs.
Top Picks:
iShares India Index ETF (XID.TO)
While emerging market stocks are far cheaper than those around the rest of the developed world, India seems to have more macro stability than most.
Vangaurd FTSE Emerging Markets All Cap Index ETF (VEE.TO)
I continue to maintain that emerging market equity is a massively under-owned asset class. Not only is this part of the world growing faster than elsewhere, it is specifically growing a middle class, while being only weakly correlated to western economies.
Vanguard FTSE Canadian High Yield Index ETF (VDY.TO)
Canadian dividend-paying stocks were badly bruised in 2015, and things look like they are beginning to normalize.
Past Picks: May 27, 2015
iShares Global Agriculture Index ETF (COW.TO)
I advised prior to my last appearance that I have sold out of this security. I've found an alternative that better meets my clients' needs.
Then: $34.33 Now: $30.89 -10.02% Total return: -8.28%
iShares Exponential Technologies ETF (XT-N)
This is something that I only used for a few clients and sold out of in early 2016 as the Canadian dollar was nearing its low point.
Then: $26.45 Now: $24.46 -7.51% Total return: -6.28%
Vanguard FTSE Emerging Markets Index ETF (VEE.TO)
I continue to like this so much that I'm still recommending it.
Then: $32.56 Now: $26.29 -19.26% Total return: -17.24%
Total Return Average: -10.60%
Market outlook:
I have no forecast regarding what the market might do in the immediate future, other than to say "it will fluctuate." Owing to my belief in market equilibrium, I continue to hold that no one can reliably outperform by picking stocks, forecasting market moves or timing changes in market sentiment. People who purport to be able to do so reliably are severely overstating their abilities. Instead, I believe that prices are more or less fair at all times. As such, people should focus on what they can control - setting an asset allocation that is suitable for them, minimizing taxes (turnover) and costs – and ultimately re-balancing as circumstances warrant.