Cole Kachur, portfolio manager & Senior Investment Manager, Wellington-Altus Private Wealth 

FOCUS: North American stocks, ETFs

MARKET OUTLOOK:

With lower volume levels typically seen after Memorial Day, we are in an investing period where you will see a bit more volatility and intraday swings. At points, markets will be choppy, but we would be looking to utilize pullbacks to add to high quality stocks and ETF positions.

Individual stocks have significant earnings risk right now as companies that are coming up short on earnings or guidance are being penalized. In some cases, those short-term overreactions can provide great entry points into good long-term investments. Our preference is still the U.S. over Canada and growth over value.

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TOP PICKS:

Dell Technologies (DELL NYSE)

Their recent earnings release has caused an overreaction in stock price and now is a good time to start accumulating shares. The stock is right now close to its 50 day moving average and we expect Dell’s positioning in the AI space to allow them to continue to build market share and higher margins. 

Kraneshares CSI China Internet ETF (KWEB NYSEARCA)

China can at times be a questionable investment environment where rules sometimes don’t apply. However, a lot of Chinese technology companies have drastically underperformed their global counterparts. With China beginning to reflate their economy, growth stocks like the ones held in this ETF could do well.

Vertiv Holdings (VRT NYSE)

Vertiv is a provider of infrastructure and services for data centres and other communication networks. This company is going to continue to be involved in the massively-expanding data centre market and has a robust pipeline and high demand for its products.

We believe we are still in the early stages of super computing and an AI revolution. Companies like Vertiv are well positioned to take advantage of the short and long term macro trends.

PAST PICKS: JULY 21, 2023

Advanced Micro Devices (AMD NASD)

• Then: US$110.95
• Now: US$163.50
• Return: 47%
• Total Return: 47%

Amazon.com (AMZN NASD)

• Then: US$130.00
• Now: US$176.97
• Return: 36%
• Total Return: 36%

iShares Russell 2000 ETF (IWM NYSEARCA)

• Then: US$194.46
• Now: US$205.07
• Return: 5%
• Total Return: 7%

Total Return Average: 30%