Skip to main content
Access every election story that matters
Enjoy unlimited digital access
$1.99
per week for 24 weeks
Access every election story that matters
Enjoy unlimited digital access
$1.99
per week
for 24 weeks
// //

David Driscoll is president & CEO, Liberty International Investment Management Inc. His focus is global equities.

Top Picks:

Dassault Systemes (DSY FP)

Story continues below advertisement

The company makes CAD/CAM software for engineers, architects, scientists and inventors. It lets them create a three-dimensional model of a product, simulate its assembly, and test it before building a prototype. This helps customers identify the "next big thing" and ensure it can be done at the lowest cost, and with the greatest manufacturing efficiency.

Atrion Corp. (ATRI.O)

The company makes medical products such as IV clamps, contact lens cases, pull-straps for life-saving vests and cardiovascular products that deliver essential fluids and medications to the heart during open-heart surgery. The firm is not covered by any brokerage analysts and has grown its profits and dividends at a double-digit pace.

Jardine Matheson (JM SP)

The company is a huge conglomerate in the Asia-Pacific region that has been around since the 1800s. Its activities include financial services, supermarkets, consumer marketing, engineering and construction, automobile dealerships, real estate holdings, as well as hotels and restaurants.

For investors, it's a one-stock holding that covers all the Asian-Pacific economies. The stock trades at 11 times earnings, its dividend has grown about 10 per cent a year and its leverage is small. If the region suffers a sell-off, Jardine has the capability to make cheap acquisitions, something that management has done successfully in the past.

Past Picks: May 20, 2014

Story continues below advertisement

Fortis Inc. (FTS.TO)

Then: $32.41 Now: $36.52 +12.68% Total return: +19.04%

Getinge AB (GETIB SS)

Then: SEK 190.20 Now: SEK 192.30 +1.10% Total return: +2.44%

FEI Company (FEIC.O)

Then: $80.14 Now: $69.46 -13.32% Total return: -11.27%

Story continues below advertisement

Total Return Average: +3.40%

Market outlook:

Removing extraordinary items from earnings, the true Price-Earnings (P/E) ratios for most indexes currently exceed 22 times, making the markets frothy and close to historical peaks. It's no surprise, therefore, that we're in the midst of a market correction. And, because of lower revenue growth and operating margins, future profits are expected to slow, shifting trading strategies from momentum-based to value-based.

As stock prices rose these past six years, the prudent action was to accumulate cash. As the market rose, investors still participated in the rally. Since the market is in a correction phase, the prior accumulation of cash has reduced potential losses and provided opportunities to buy stocks at cheaper prices.

Having some cash available is often a good strategy, as it lets investors take advantage of market corrections and buy gradually. No more than a 20-per-cent cash weighting is recommended. Holding too much cash forces an investor to pick the market bottom (something I've never seen anyone do in my 36 years of investing). Instead, use a pragmatic approach. Leave emotions at the door, make a plan before investing and stick to it. It ensures that you won't run out of money and it will let you sleep at night.

Your Globe

Build your personal news feed

  1. Follow topics and authors relevant to your reading interests.
  2. Check your Following feed daily, and never miss an article. Access your Following feed from your account menu at the top right corner of every page.

Follow topics related to this article:

View more suggestions in Following Read more about following topics and authors
Report an error Editorial code of conduct
Tickers mentioned in this story
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

If you do not see your comment posted immediately, it is being reviewed by the moderation team and may appear shortly, generally within an hour.

We aim to have all comments reviewed in a timely manner.

Comments that violate our community guidelines will not be posted.

UPDATED: Read our community guidelines here

Discussion loading ...

To view this site properly, enable cookies in your browser. Read our privacy policy to learn more.
How to enable cookies