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David Cockfield.

David Cockfield is managing director and portfolio manager at Northland Wealth Management. His focus is on Canadian equities.

Top picks:

Canadian National Railway

Canada's largest railway has significant trackage in the U.S. Pipeline construction delays have offered the profitable opportunity to CNR to ship oil by rail. Growth and the profits in this sector continues and will likely do so for several years to come. The stock trades at a reasonable multiple of 17.7X earnings and is a good candidate for a stock split and a dividend increase.

Crescent Point Energy

One of the best managed Canadian oil companies focused in the Bakken oil play in Saskatchewan and North Dakota. The company has been quick to ship oil via rail by building oil-shipping facilities. Production has consistently increased ahead of projections and the company has made no major acquisitions recently responding to investor concerns about share dilution . The stock provides a generous yield of 7.18 per cent.

Power Financial Corp.

A conservatively-managed non-bank financial holding company. Well established Canadian financial companies controlled by Power Financial include Great West Life, Investors Group, London life and Mackenzie Financial. The company pays a good dividend of 4.35 per cent.

Past Picks: August 24, 2012

Baytex Energy
Then: $46.66
Now: $41.98
Total return: -3.79 per cent

Sprott Gold Bullion Fund (Series F - SPR226)
Then: $13.91
Now: $11.32
Total return: -18.60 per cent

BCE Inc.
Then: $44.62
Now: $44.49
Total return: +6.41 per cent

Total return average: -5.33 per cent

Market outlook:

Canadian equity markets recently reached yearly highs but are experiencing upside resistance. The last several months however have seen Canadian equities outperform U.S. equities, a significant improvement over the first six months. Upcoming events in the U.S., particularly the needed increase in the debt ceiling, are likely to unleash a period of political turmoil. U.S. equity markets will be choppy and Canadian markets will follow suit.