Saturday, September 10, 2011

Money Show, Robert Gorman 2

Robert Gorman, Chief Portfolio Strategist of TD Waterhouse, Canada gave his remarks also in the Opening Ceremonies of the Money Show. However, his was quite a bit longer than anyone else as it was scheduled for one half hour. His talk was, he said of 6 themes. The first three were in part 1 and the last 3 are in part 2 below.

His fourth theme has to do with Bonds. We have had a 30 year bull market in bonds and it is now over. Bond yields in the future will go up and total returns will go down. Probably the best bonds will be corporate bonds.

His 5th theme was to avoid southern European stocks and concentrate on northern European stock. The first one he mentioned would be Nestle S. A. This is the largest food and nutrition company in the world and is Swiss. Next would be Diageo, which is a British Distiller. Another company to hold is British Petroleum (BP). The last is Standard Charter Bank, which is a British bank that is heavily into Asia.

His last theme is about emerging markets. China has done the best this year and most other Asian countries are under water at this point. The Return on Equity is increasing in emerging markets. However, they have a shortage of skilled labor and this will push up wages and compress profit margins going forward. Emerging market growth will go forward in the single digits.

There were a couple of other stocks he recommended and they all have strong dividend growth. They are Suncor Energy (TSX-SU), Canadian Oil Sands (TSX-COS) and Potash Corp. of Saskatchewan (TSX-POT).

This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website for stocks followed and investment notes. Follow me on twitter.

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