Time to Accumulate? The recent selloff is likely a surprise to most, but unless the downward pressure continues, we feel that this selloff is largely investor positioning, rebalancing, and taking profits. Earnings season is approaching late next week, and there are many upcoming macro data points to take in. We feel that surprises to the upside are still quite likely.
We would be comfortable averaging into positions today, as most markets are near an all-time high, which is a difficult level to break through, but once the markets eventually break through these levels, it tends to continue moving higher. Stocks that we feel are at good levels for accumulation include: DCBO, DOL, BNS, BN/BAM, IFC, TD, and GIB.A. (5iResearch)