Cole Kachur, portfolio manager and senior investment advisor, Wellington-Altus Private Wealth

FOCUS: North American stocks, ETFs 

MARKET OUTLOOK:

Markets continue to be range-bound, coming down slightly from their most recent highs but also staying within defined trend zones. Within this context, we would view any short-term pullback as a buying opportunity with a specific focus on mega-tech and chip stocks. Earnings have mostly surprised to the upside and the companies with the most positive outlook are being rewarded with price gains. Volatility will be prevalent through the end of the year but there are many names that have corrected back to levels that should represent a good entry point. We favour the U.S. over Canada and would weight portfolios towards American stocks. 

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TOP PICKS:

Micron Technology (MU NASD)

This name is a little bit lesser known than Nvidia, AMD and Intel but has shown really strong growth metrics over the past year. We believe that its chips will continue to be in high demand and this will lead to strong pricing power and the ability to boost profits. It has recently come down from around $125 and bounced nicely off chart support at around $107. It looks like a good technical entry point to one of the top names in the chip sector.

Meta Platforms (META NASD)

We have used the recent price weakness as an opportunity to buy META. The stock has come down around $100 to $430 in the past two weeks despite relatively strong earnings and growth rates. The stock was priced to perfection and less-than-perfect earnings have led to an attractive entry point. Meta is continuing to spend on AI, which we would view as a good thing and something that could have the potential to drive the stock higher over the coming months. We see the stock reclaiming old highs, plus some.

iShares Semiconductor ETF (SOXX NASD)

We think the semi-conductor space is going to continue to lead the way with the advancement of technology, specifically AI. With SOXX you get broad-based exposure to many of the top chip makers and you aren’t as susceptible to individual stock risk as you would be if you are trying to stock pick. These stocks can be on the volatile side but I expect this index to outperform the broader Nasdaq over the coming year. If you are willing to add risk, I think this is a name that will reward you, specifically with the recent market pullback. 

PAST PICKS: MARCH 7, 2024

Ishares US Small Cap Index ETF (XSU TSX)

• Then: $40.31
• Now: $38.07
• Return: -5%
• Total Return: -5%

Apple (AAPL NASD)

• Then: US$169.00
• Now: US$171.20
• Return: 1%
• Total Return: 1%

Alphabet (GOOG NASD)

• Then: US$134.38
• Now: US$165.40
• Return: 23%
• Total Return: 23%

Total Return Average: 6%