TD manager advises investors to lower expectations

Michael O'Brien is taking selective profits and reducing his exposure to cyclical stocks.

Sonita Horvitch 2 July, 2015 | 5:00PM
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Michael O' Brien, managing director and head of the core Canadian-equity team at TD Asset Management Inc., says that key macroeconomic headwinds combined with higher equity-market valuations suggest that investors in equities need to be even more strategic and disciplined in their stock selections and sales.

"The Canadian-equity bigger-cap market -- as represented by both the S&P/TSX 60 Index and the S&P/TSX Composite Index -- has been essentially flat since the beginning of 2015, as well as over the past 12 months to recent close."

O' Brien's comprehensive statistics show that energy, a heavy weighting in both Canadian indexes, has produced negative returns over both time frames and has been among the poorest performing sectors. Meanwhile, the financial-services sector -- which is another big weighting -- has delivered flat to low-key returns.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
ARC Resources Ltd11.81 CAD-2.32
BCE Inc63.59 CAD-0.33Rating
Canadian Natural Resources Ltd52.43 CAD1.88
Crescent Point Energy Corp6.28 CAD-0.95
Finning International Inc34.25 CAD2.70
Great-West Lifeco Inc38.07 CAD-1.40Rating
Intact Financial Corp167.63 CAD0.64
Manulife Financial Corp25.01 CAD0.64Rating
Metro Inc61.97 CAD0.47Rating
Rogers Communications Inc Class B60.68 CAD1.07Rating
Suncor Energy Inc29.11 CAD0.03
Suncor Energy Inc23.51 USD-0.17
TELUS Corp27.96 CAD0.22Rating

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Sonita Horvitch

Sonita Horvitch  

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