Page 32 - Biz X Magazine - June, 2014 Issue

portfolio corner Baseball Season In reality, the opposite has occurred in the frst four months. Tis is particularly By Steven Mayo evident with the strong performance of Canadian oil stocks. With baseball season upon us, we could actually think of it as “patient investor season.” Ofen, the overly optimistic start of Earlier this year, I expressed that investor investment ideas will be apparent. a New Year fades as we go through the year, “over-confdence” may be the biggest risk In general, with the majority of and it may be met with an overly cautious facing investors in 2014. traditional companies having excellent summer. As investors, we should recognize As of early May, this risk has defnitely balance sheets, paying a dividend, and that “overly cautious” usually means lower presented itself in the high momentum possibly buying back shares, I would expect prices, which means better buys. Tis is the stocks, especially in the US. Tis particular market corrections to be shallow in North pitch that investors are waiting for. group has received excessive attention from America. Also, I expect institutions that Valuation remains the primary driver the media and they are starting to cause still have large cash balances, to happily for successful investing. Te second is investor psychology to turn quite negative. buy into any correction. Tink in terms of a reasonable time frame to allow the Once again, the media – television and sectors, not the whole market. It’s easier! investment to evolve into a success, all the magazines, are giving too much attention Also consider the following: (i) Markets while monitoring the corporate news. to an investment category that the majority tend to have severe corrections during It’s summer time. Batter up! Your pitch of investors don’t participate in. If this recessions, and there is no evidence of this is coming. continues through June, then summer on the economic horizon. In fact, it could Quote: “Every strike brings me closer to opportunities will be more evident in high be argued that the US economy is getting the next home run. ” ~ Babe Ruth quality US names. stronger. (ii) Te consensus today is that a Steven Mayo is a Vice President, To prepare, I encourage investors to severe correction is due, however in market Investment Advisor with RBC Dominion create a “June 30th buy list” consisting of terms the exact opposite of consensus is Securities Inc. (Member – Canadian the following items: (i) Of the 10 sectors what usually occurs. Investor Protection Fund). Tis article is not in the S&P 500, fnd the two sectors which For example, as we entered 2014, intended as nor does it constitute investment underperformed for the last six months, consensus thinking was that US stock advice. Readers should consult a qualifed and (ii) Find the two leading stocks markets would continue to out pace the professional before taking any action based within those sectors. It is likely four solid Canadian markets. on information in this article. Cigarette Waste - The Big Litter Problem MAKE A CLEANER FIRST IMPRESSION... Improve the appearance of your facility • Eliminate unsightly cigarette waste Encourage the proper disposal of cigarette butt waste Keep your designated smoking areas clean with outdoor ashtrays in wall-mounted and free-standing designs. 2539 Dougall Ave, Windsor (1 block S. of Eugenie) 519-250-0366 • 1-800-665-6263 www.ecolad.ca 32 BIZ X MAGAZINE • JUNE 2014 BizX2014June52.indd 32 2014-05-27 9:43 PM