A portfolio manager's picks

A portfolio manager's picks

A portfolio manager Wolfgang Klein, a portfolio manager with Canaccord Genuity Wealth Management, gives WP his latest investment tips.

“If I were a currency trader I would be buying the good old British Pound,” Klein says. “It is deeply oversold with what appears to be a short squeeze taking place. As we equate the loonie to the U.S. greenback using Par as a reference point, I have a similar reference point for the pound versus the loonie and that is 2X Par or a toonie. Brexit or not, the pound has fallen to the ground and is now rising like the phoenix.”

“My second idea is to hold a slight overweight cash position, say 10%, and build a shopping list for the next pullback. This market is very resilient and there is no arguing that we are in a secular and cyclical bull market and although they do not die of old age, as the summer nears I would expect a pickup in volatility. I am considering building a position in emerging markets, symbol EEM-US, but I am not there just yet. This is a pure valuation call as emerging markets trade at several multiple points discount to the U.S.”

“Lastly, I am staying the course with my overweight equity, underweight bond stance. Markets are trending sideways for now and volatility over the next few weeks/months is expected. So I shall clip some dividends and coupons, wait for a pullback and add to names on my watch list.”

The views expressed do not necessarily reflect the opinion of Canaccord Genuity Wealth Management. This does not constitute an offer or solicitation to buy or sell any of the securities mentioned. The information contained herein may not apply to all types of investors.

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