Rebecca Teltscher

Click here to watch Lyle Stein on BNN Market Call on Tuesday December 2, 2014.

In this segment, Lyle describes the market as “schizophrenic” since on one hand, we are seeing liquidity driven trades into safer sectors such as consumer discretionary and utilities and on the other hand the bond market and commodity sectors are discounting as if the world were coming to an end.

He reinstated Leon Frazer’s philosophy of investing in good income opportunities at a reasonable price where companies can grow their dividend over time. Although we are overweight energy, most of the companies we own are pipeline or energy infrastructure names that are not exposed to commodity prices as their revenue is based on take or pay contracts  and therefore should not get affected by lower oil prices.

Lyle’s discusses his 3 top picks. Goldcorp, the most profitable and capitalized gold company. Production ramping up from 3 million ounces to 3.5 million ounces with most of the capital spending behind them. They are the low cost producer that can still make money at $1200 gold prices.  Altagas is more of a Utility company than an Energy company. They have raised their dividend and will continue as their new large hydro projects come online next year. ShawCor has good exposure to the sector without directly being affected by the commodity price of oil.

For the full video replay, please click here.



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