Alex Ruus, portfolio manager, Arrow Capital Management 

FOCUS: North American stocks

MARKET OUTLOOK:

The economy is in a relatively neutral situation currently, with higher interest rates causing a drag and profligate government spending causing an offsetting boost. The net effect has been to allow corporate profitability to continue at high levels, allowing stock markets to rise. While the overall market has had a good start to the year, some of the market leaders are now trading at very high valuations which will likely lead to a choppier stock market over the coming year.

Plenty of great investment opportunities remain in the market, however, allowing careful stock selection to be robustly rewarded over the coming year. We look forward to an excellent year for the NR Conservative Growth LP.

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TOP PICKS:

POLARIS RENEWABLES (PIF TSX)

A growing producer of green electricity in South and Central America with an enviable track record. The company is undervalued with just a P/E of just 13, a double digit free cash flow yield, and an attractive 6.65 per cent dividend yield despite attractive growth prospects.

PFIZER (PFE NYSE) 

One of the world's largest pharmaceutical companies, with leading drugs in many categories including the top selling COVID vaccine. The company is trading at close to five-year lows for valuation at just 10 times earnings and an attractive 5.82 per cent dividend yield.

TAMARACK VALLEY (TVE TSX)

An undervalued growing Canadian Oil and Gas producer, with a focus on the high-returning Clearwater and Charlie Lake oil plays. The company recently put their money behind their undervalued stock with a stock buyback program. The company trades at a very attractive valuation of just around three times cash flow, a double-digit free-cash flow yield, and a growing 4.18 per cent dividend.