Wednesday, May 7, 2014

BNN Top Picks of Christine Poole: Loblaw L, Fluor Corp FLR , Home Depot HD

Christine Poole, CEO & Managing Director, GlobeInvest Capital Management

FOCUS: North American Large Caps

Market Outlook:
Equity markets continue to grind upwards, supported by positive corporate growth, a resilient global economy, accommodative monetary policy by central banks and more recently, resurgence in global merger and acquisitions activity. Mergers and acquisitions are being largely driven by U.S. corporations with big overseas cash hordes, the availability of cheap financing, rising corporate confidence in a sustainable economic recovery and pressure to maximize capital efficiency by activist shareholders. 

The negative impact of sanctions on the Russian economy, which accounts for less than three percent of global GDP, should not on its own derail the global recovery. However, the situation bears close monitoring as escalation of political tensions and actions by the Russian government could hamper the European recovery giving rise to risk aversion tactics. Nonetheless, equities continue to be the favoured asset class and inevitable market pullbacks will be used to increase exposure.
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