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

Top Picks:

Apple (AAPL.O)
The story of Apple stock seems to be recurring. Investors remain skeptical, with one issue replacing another as a point of concern. Today, it's China and its slowing growth. There is one undeniable fact: Apple has performed, as a company, in a far superior way to the expectations of the market.

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Boeing (BA.N)
Boeing's stock price is 18 per cent off its highs despite having excellent visibility of order flow, cash flow and earnings. BA's backlog now tops over half a trillion dollars (U.S.). Worries about Chinese growth seem misplaced as Boeing released a new projection, increasing sales growth expectations to China through 2020 by 5 per cent. With a very predictable growth rate of cash flow and earnings through the end of the decade, Boeing represents an excellent opportunity.

La-Z-Boy (LZB.N)
Household formations in the U.S. are expanding but continue below trend. Consider that new home construction is running at about a million units annually but needs to grow by 50 per cent to keep up to household formations. As these metrics change, the fortunes of La-Z-Boy, a company highly correlated with household growth, will improve.

Past Picks: August 20, 2014

Aegion (AEGN.O)
Then: $24.32; Now: $17.96; -26.15%; Total return: -26.15%

Dana Holding (DAN.N)
Then: $23.85; Now: $16.56; -30.57%; Total return: -29.81%

Time Warner (TWX.N)
Then: $77.02; Now: $71.67; -6.95%; Total return: -5.42%

Total Return Average: -20.46%

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Market outlook:
The current market upheaval has all the markings of a bull market correction rather than the beginning of a bear market. High levels of volatility, reversals in direction and swings in sentiment will wash out investors with weak conviction. It will likely last several days to a couple of weeks and result in an investor base with the proper amount of respect for the market, which after all is a risk-based asset.

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