John Ewing, Chief Investment Officer, Ewing Morris & Co. Investment Partners.
Focus: North American small and mid-caps and REITs
Top picks: Latham, Driven Brands, Minto Apartment REIT
MARKET OUTLOOK:
We didn’t expect that a tariff war and escalating tensions in the Middle East would cause the S&P 500 to reach new highs. And that is precisely why we at Ewing Morris neither make nor rely upon broad market calls. Instead, we simply attempt to follow Warren Buffett’s advice to “be greedy when others are fearful and fearful when others are greedy.”
Today, it appears that market participants are feeling greedy. The S&P 500 is trading near its all-time high and credit spreads are near historical tights. Consequently, we find ourselves leaning towards caution, building cash and adding hedges.
However, the U.S. small cap market, despite a strong rally in the second quarter, is still trading well-below its all-time high. We continue to find opportunities within this market, where security selection remains important.
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TOP PICKS:
Latham (SWIM NASD)
Driven Brands (DRVN NASD)
Minto Apartment REIT (MI-U TSX)
| DISCLOSURE | PERSONAL | FAMILY | PORTFOLIO/FUND |
|---|---|---|---|
| SWIM NASD | N | N | Y |
| DRVN NASD | N | N | Y |
| MI-U TSX | N | N | Y |
