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Paul Harris.

Paul Harris is partner and portfolio manager at Avenue Investment Management. His focus is North American and global equities.

Top Picks:

First Service (FSV.TO)
First Service was recently spun out of Colliers International. The company focuses on residential property management and services. It has room to grow market share in what remains a very fragmented business. The stock trades at 23.4 times earnings and a yield of 1.2 per cent.

Element Financial (EFN.TO)
Element is North America's leading vehicle and equipment finance company. The company has strong exposure to the U.S. and recently completed the acquisition of GE Capital's U.S. fleet management business. Trades at 12.6 times earnings and 1.9 times book value.

TD Bank (TD.TO)
TD has grown it U.S. franchise and continue to grow in Canada. The stock trade at 10.8 times earnings and 1.65 times book value and yields 3.9 per cent.

Past Picks: August 14, 2014

Deere & Co. (DE.N)
Then: $84.89; Now: $90.65; +6.79%; Total return: +9.70%

Target (TGT.N)
Then: $58.74; Now: $80.66; +37.32%; Total return: +42.50%

Barclays PLC (BCS.N)
Then: $14.68; Now: $16.46; +12.13%; Total return: +14.95%

Total Return Average: +22.38%

Market outlook:
The selloff in commodity prices has continued over the past few weeks which has put downward pressure on the TSX. Concern over declining economic growth in China has been the main reason. Concern was also raised last week when China devalued its currency. There continues to be an oversupply of oil across the globe, with new production continuing to come on-line. This has led to further weakness in the price of oil, which we are seeing play out in the stock market. We still think there are further dividend cuts to come from the oil patch. We see the decline in the value of the Canadian dollar to be a tailwind for Canadian exports which should boost the level of growth in the second half of the year. The U.S. economy continues to add jobs each month at a reasonable pace. We think that the Fed is likely to raise interest rates one time before the end of the year.