Unsure why it's dropped a lot lately, but he likes the fundamentals of the insurers. Interest rates are rising and people are living longer, so the lifecos can collect premiums for longer. There is rotation between lifecos and banks, and that
could be happening now. Thinks SLF is the best Canadian insurance stock and believes in the insurance industry long-term.
His favourite Canadian oil producer, but he sold all his oil producers six months ago, because Canadians can't get world prices for oil. He bought U.S. producers instead, because they get that world price. Canadians have failed to
build pipelines. There will come a time when we will have pipelines, but that time looks far off.
Great bank, though he owns more of TD, because of its U.S. exposure. RY is extremely well-managed. You can't go wrong owning it. But if RY is too big a part of your portfolio, sell some of it and buy a U.S. bank like JPM. Note: Canadian dividends pay better dividends and benefit from Canada's dividend tax credit, whereas you're taxed more on U.S. banks. He sees more upside with American banks, but check with your accountant and advisor about the taxes first. Otherwise, but another Canadian bank.
(Past Top Pick Aug. 9, 2018, Down 8%) Adding to it and still believes in it. They've bought firms good and integrating them well. They play into e-commerce. DSG is good at crossing borders so they can partner with companies who need someone to manage the paperwork and logistics. And the more complex trade agreements become, the more Descartes will benefit.
Rising interest rates, good management and it's currently off its highs, so a good time to enter this. Also, the U.S. is at full employment. There's room to move. He thinks the US Fed will do three more 0.25% hikes, which won't kill the economy or housing market. (3.0% dividend yield, Analysts' price target: $124.09)