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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:

FirstService (FSV.TO)

FirstService was recently spun out of Colliers International. The company focuses on residential property management and services. It has room to grow market share in the U.S. in what remains a very fragmented business. Trades at 23.3x next year's earnings and yields 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 11.5x next year's earnings.

DH Corp. (DH.TO)

DH is a North American financial technology company. They operate in 3 key areas of payment solutions, lending solutions, and enterprise solutions. They have made a few significant acquisitions over the past few years, and over half of their revenue is now generated in the U.S. Trades at 15.1x next year's earnings and yields 3.3 per cent.

Past Picks: September 24, 2014

Deere & Co. (DE.N)

Then: $83.77 Now: $72.89 -12.99% Total return: -9.89%

Target (TGT.N)

Then: $63.88 Now: $79.51 +24.47% Total return: +28.03%

Barclays PLC (BCS.N)

Then: $15.13 Now: $15.01 -0.79% Total return: +1.70%

Total Return Average: -6.61%

Market outlook:

We are continuing to see volatility in the stock market as concerns over global growth have reverberated over the past few weeks. Investors seem to be treading more cautiously with some of the uncertainty that is out there in the market, which has led to an overall decrease in market liquidity. There has been some positive economic data coming out of Canada in the past few months as we have seen strong GDP growth in June and July. The decrease in the Canadian dollar is starting to have a positive impact on exports which we have seen in the last two GDP reports. The U.S. economy continues to add jobs each month at a very strong pace. Although the Fed did not raise rates in September, we think that they are likely to raise interest rates one time before the end of the year.

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