Customers have two reasons to support the actions this year that the recovery is firmly in the saddle and the fact that the return on government bonds of 10 years is less than the dividend yield of certain actions.

But esteem is what Christian Godin, Head of Canadian Equities at Montrusco Bolton. He believes that the evidence leading Canadian and U.S. can earn from 10 to 15% in 2012: “The attraction of the dividend is very important. As the dividend yield is above the bond yield, it will be many investors who are fond of such securities. ”

This will facilitate a securities offering high dividend yield like financial services and telecommunications. “In less important in the energy sector, there are several titles that offer good dividend yields. These securities are a distributor of gas and oil, “says he.


The economic recovery will gain momentum in the United States has enough to make optimistic Christian Godin with the actions, especially since the Canadian equity markets have experienced negative returns almost zero in 2011.

According to its main scenario, growth will be favorable to the actions of oil and gold sectors. “Their performance will remain high, so higher in 2012 than in 2011,” said Christian Godin.

The manager is not expecting a rise in interest rates. The rate of Canada will remain stable or will grow by 25 basis points. “Governments can not raise rates too quickly to avoid weakening the consumer, which should greatly reduce its consumption to pay the mortgage,” said Christian Godin.

In terms of fixed income, it promotes the securities with maturities close. “A small rise in interest rates has much less impact on a short-term securities as a long term basis. That’s why our portfolio has a duration slightly less than that of the DEX Universe index, “says he.

Due to low interest rates on government bonds, Christian Godin is more favorable to provincial and corporate bonds. “In the long term, stocks and bonds gave good returns to individuals. In the future, there is more upside potential for stocks and bonds, “he adds.

Risks

Some risks, however, could derail this scenario. First, for Canada, a too restrictive monetary policy in China can affect growth in this country and, ultimately, lower commodity prices.

The U.S. elections may also precarious market. “What will be the policies advocated by the Republicans or the Democrats? It’s going to have an impact. I fear the potential barriers with China or with emerging countries, “he asks.

Otherwise, Christian Godin is pleasantly surprised to see a crisis in Europe in 2012: “If there was a rapid resolution of the European crisis, either by June or November, everyone would be surprised as most people believe that it will take three to five years to solve the problems of the euro area. “

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