eResearch | The Top Ten Portfolio put on a “growth” spurt last week with a gain of 2.8% to $609,764. The S&P/TSX Composite Index rose 0.8% so the Top Ten Portfolio gained some ground against the benchmark and now only trails it by 0.6% for the year.
YTD Gain 22.0%
Our initial investment was $500,000 so, at $609,764, the Top Ten Portfolio is ahead by 22.0%, which includes dividends received and trading profits.
Cash
No changes were made to the composition of the Top Ten Portfolio last week, so the cash component continues to be 15% of the overall Top Ten 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 January.
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, only 2 of the 9 stocks in the Top Ten Portfolio are “under water”. These are NFI Group and Vermilion Energy. The best performers are AltaGas, Kinaxis, and Parex Resources.
The current Top Ten Portfolio is presented below:
You can read our comprehensive report here: Top Ten Portfolio – December 20, 2019
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