eResearch | The Top 10 Portfolio essentially marked time these last three weeks, declining an insignificant 0.7%. However, the S&P/TSX Composite Index rose 0.3% so the Portfolio lost a bit of ground against the benchmark.
19.2% Gain YTD
Our initial investment was $500,000 so, at $596,249, the Top 10 Portfolio is ahead by 19.2%, which includes dividends received and trading profits.
Cash
The Top 10 Portfolio’s cash component continues to be 15% of the overall Top 10 Portfolio value. We still think that there could be a near-term correction, but we are equally cognizant that the Holiday Season is usually a buoyant time for stocks, which often extends into the first few weeks of the new year. Still, if there is a sell-off, we are ready to use our cash resources to take advantage of stocks that have fallen to attractive levels.
Market Decline
In terms of a possible sell-off if and when it occurs, based on current metrics, it is likely to be shallow and short-lived. A pull-back of 5%-7% would be welcome if it opens up attractive buying opportunities.
Worst and Best Performers
Currently, there are 3 of 9 stocks in the Top 10 Portfolio that are “under water”. These are Fairfax Financial Holdings, NFI Group, and Vermilion Energy. The best performers continue to be AltaGas and Kinaxis.
The current Top 10 Portfolio is presented below:
You can read our entire report here: Top Ten Portfolio – December 13 2019
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