Six reasons to like consumer-discretionary stocks

Manulife manager cites economic growth, rising profits and attractive valuations.

Michael Ryval 17 September, 2015 | 5:00PM

As North American economic momentum continues to be positive, the consumer-discretionary sector is the place to be, says Marie-Eve Savard, a Montreal-based vice-president at Manulife Asset Management.

"We do like what we see in terms of the macro environment," says Savard, lead manager of the 4-star rated Standard Life Monthly Income. "We are in a period of moderate global growth. There have been some hiccups along the way and it has been a bit slower. But we think that monetary conditions are getting easier (outside North America) and that will be a driver for growth. And we like cyclical sectors outside of resources."

Although Savard is mainly a bottom-up investor, the fact that the U.S. economy has proven to be a standout in a moderate global growth environment is a key part of her thesis. "We have a strong U.S. consumer. So from a macro standpoint, the sector makes sense," says Savard, noting that the employment picture is improving and rising house prices are encouraging homeowners to spend on renovations. "Look at auto sales in the U.S. They are back to the peak. And in Canada, we're not in such bad shape."

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Canadian Tire Corp Ltd195.55 CAD1.32
Canadian Tire Corp Ltd Class A151.46 CAD0.01
Gildan Activewear Inc36.42 CAD-1.59
Target Corp117.34 USD-0.42
The Home Depot Inc243.87 USD-0.03

About Author

Michael Ryval

Michael Ryval