Markets have been rough lately, and haven’t really gone anywhere. We finally hit a new high for the TSX60 compared to late February and mid-September. Put another way, the stock market has made no progress in over seven months. Bonds were at a low point last September and have advanced since then. Bonds made no headway at all between September, 2011 and January 2015. Since then, they’ve advanced 3.25%.
But bonds have almost no momentum. Chinese stocks (FXI) are still way out in the lead, with Brazin stocks (EWZ), Hong Kong stocks (EWH) and emerging market stocks (XEM) following. Just comparing Canadian and American stocks, they have about equivalent positive momentum.
Last week, I pointed out Amazon (AMZN). Well, it jumped 14% this past Friday. That worked out well. This week, AbbVie (ABV) and Microsoft (MSFT) also appear attractive.
In Canadian large caps, a number of stocks all have good momentum: PWT, COS, CCT, VRX, FM, CCO and ERF. That’s enough to create a tidy portfolio. Having said that, “sell in May and go away,” is coming up in just five weeks. This may well be a last hurrah before the summer.