Skip to content
Scotia Wealth Management
The Stan Wong Group ScotiaMcLeod®, a division of Scotia Capital Inc.

+1 855.752.1996 Get directions Scotia OnLine

Stan on BNNBloomberg.ca

Market Outlook & Top Picks from Stan Wong (iShares S&P/TSX Composite High Dividend Index ETF, Netflix and Teledoc Health)

August 27, 2020

Market outlook

Driven by a handful of technology and communications giants, the S&P 500 Index has remarkably made new all-time highs despite a global pandemic and lingering effects of an economic lockdown. The Index is up over 55 per cent from the depths of the March lows. Economic data continues to surprise to the upside and monetary policy remains decidedly dovish. However, potential risks linger on the horizon: a possible COVID-19 resurgence, escalating U.S.-China tensions and a disputed presidential election are potent hazards to consider. Market breadth has been notably lacking, with less than 45 per cent of the S&P 500 Index constituents on positive ground year-to-date. Lastly, from a technical perspective, U.S. and global equities are undoubtedly in overbought territory as measured by the relative strength index (RSI) measure.

In Stan Wong managed portfolios, we continue to favour growth stocks over value stocks. We prefer companies with high quality attributes (high return on equity, low financial leverage and low earnings variability) as we believe that they offer resilience during times of economic uncertainty. Equities with dividend appreciation characteristics are encouraged over those with high yields but no dividend growth. Looking ahead, we view select healthcare, technology, communication and consumer companies benefiting from structural trends accelerated by the global pandemic. Work-from-home, e-commerce, health sciences, retail consolidation and cloud computing are a few of the themes and trends that we expect to be in focus for many years to come. Our portfolios reflect these important themes and we believe that our clients are well-positioned to benefit from them.

View Full Article & Video

Legal

This publication has been prepared by Scotia Capital Inc. and is intended as a general source of information only and should not be considered as personal and/or specific financial, tax, pension, legal or investment advice. We are not tax or legal advisors and we recommend that individuals consult with their qualified advisors before taking any action based upon the information contained in this publication. Opinions and projections contained in this publication are our own as of the date hereof and are subject to change without notice. While care and attention has been taken to ensure the accuracy and reliability of the material in this publication, neither Scotia Capital Inc. nor any of its affiliates make any representations or warranties, express or implied, as to the accuracy or completeness of such material and disclaim any liability resulting from any direct or consequential loss arising from any use of this publication or the information contained herein. This publication and all the information, opinions and conclusions contained herein are protected by copyright. This publication may not be reproduced in whole or in part without the prior express consent of Scotia Capital Inc.