Colin Cieszynski’s Strategic Picks for August 2024 Investors
Navigating Volatility: Colin Cieszynski’s Strategic Picks for August 2024

Investing wisely in a volatile market requires keen insight and strategic picks. Colin Cieszynski, the chief market strategist at SIA Wealth Management, shares his top investment choices for August 7, 2024. Known for his expertise in technical analysis, Cieszynski’s recommendations include the BMO Ultra Short-Term Bond ETF, Kinross Gold, and Costco Wholesale. Let’s delve into the reasoning behind these selections and the current market outlook.
Market Outlook
Historically, the period from August to October has been the most challenging for equities, characterized by increased volatility. This year is no exception, with stocks showing a pattern similar to previous years.
The reaction to the earnings season has been mixed, with more stocks facing neutral to negative responses. The majority of companies have either not moved significantly or have experienced sell-offs, highlighted by Intel's significant post-earnings plunge.
Political tensions have escalated globally, influencing market sentiments. The U.S. election campaign, alongside strife in Europe and the Middle East, adds layers of uncertainty, impacting investor confidence.
Economic instability is evident, with China’s prolonged struggles and two recent interest rate cuts by the Bank of Canada signaling a weakening economy. The U.S. economy, previously resilient, has shown cracks, especially after disappointing employment reports.
The VIX Volatility Index's upward spike and the stable price of gold reflect growing fear among investors. Assets traditionally viewed as safe havens, like the Japanese yen, are regaining favor, indicating reduced risk appetite.
Top Picks Analysis
BMO Ultra Short-Term Bond ETF (Accumulating Units) (ZST.L TSX)
Given the anticipated volatility, parking assets in safer investments is prudent. The BMO Ultra Short-Term Bond ETF is designed to provide stability and income, holding bonds maturing in up to one year. This structure offers a balance between security and potential income generation. This ETF’s short-term focus makes it a suitable choice for risk-averse investors seeking capital preservation. It includes accumulating units, allowing investors to reinvest income efficiently, making it ideal for non-registered accounts.
Kinross Gold (K TSX)
Kinross Gold is a major player in the gold mining industry, known for its robust performance and strategic operations. Currently the top-ranked stock in the SIA TSX 60 Report, Kinross has maintained its position through recent market fluctuations. Gold’s role as a haven asset makes Kinross a strategic pick during uncertain times, offering stability and growth potential.
Costco Wholesale (COST NASD)
Costco Wholesale is a leading retailer, recognized for its resilient business model and strong market presence. Consistently high in SIA U.S. relative strength reports, Costco attracts investors as a defensive play amidst economic uncertainty and inflation. With a weakening economy, discount retailers like Costco are appealing due to their ability to attract budget-conscious consumers.
Investment Strategies for Volatile Markets
Navigating a volatile market requires a strategic approach and sound investment choices. Diversifying investments across different asset classes helps mitigate risk and stabilize returns. Investing in defensive assets like bonds and gold provides a cushion against market downturns. Focus on preserving capital by investing in low-risk assets and staying updated with market trends.
Conclusion
Navigating a volatile market requires a strategic approach and sound investment choices. Colin Cieszynski’s top picks for August 2024—BMO Ultra Short-Term Bond ETF, Kinross Gold, and Costco Wholesale—offer a balanced mix of safety and growth potential. By understanding the current market outlook and employing defensive strategies, investors can manage risks and capitalize on opportunities.
