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Gordon Reid is president and CEO, Goodreid Investment Counsel. His focus is U.S. equities.

Top Picks:

CVS Health (CVS-NYSE)

CVS benefits from the longer-term positive catalysts of an aging population and easier access to prescription medication because of health care reform. When combined with the trend toward much higher margin generic drugs and an active management who are unafraid to make controversial decisions such as the discontinuation of the sale of tobacco products, we believe CVS will prove to be a long-term winner.

Esterline Corp. (ESL-NYSE)

Esterline manufactures components for the aerospace and defence market, as well as adjacent applications in a variety of industries. While the commercial aircraft area has been a boon, defence and business in Europe have been a drag, but Goodreid believes these areas provide opportunity for future growth.

Ryland Group Inc. (RYL-NYSE)

The Federal Reserve approach of slowly raising rates as the economy strengthens is a Goldilocks scenario for home builders with expectations of more balanced lending standards and a continued improvement in consumer confidence. As the supply/demand imbalance corrects home builders will be the winners.

Past Picks: March 14, 2014

Alere (ALR-NYSE)

Then: $36.12; Now: $48.71 +34.86%; Total return: +34.86%

Boeing (BA-NYSE)

Then: $123.11; Now: $152.70 +24.04%; Total return: +27.01%

Google (GOOG-Nasdaq)

Then: $558.46; Now: $552.03 -1.15%; Total return: -1.15%

Total return average: +20.24%

Market outlook:

The moving parts affecting today's equity markets are making determinations of valuation more complex. On the economic front, with the exception of job growth, a weak environment is causing many to think that interest rates will stay lower for longer. Secondly, the strength of the U.S. dollar must be causing U.S. central bankers fits due to its deflationary pressure. Additionally, markets are having difficulty deciding whether lower oil prices are a good or bad thing, and finally corporate profit expectations are falling. Volatility is a product of these times, with investing success more tied to stock selection than any time in the past half dozen years.

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