Darren Sissons' Top Picks for August 2024: Strategic Investment Insights

Navigating 2024's Complex Market: Darren Sissons' Strategic Picks

Editorial Team (ET)July 1, 2025

Darren Sissons, a renowned partner and portfolio manager at Campbell, Lee and Ross Investment Management, is well-known for his insightful analysis and strategic picks in the global technology stocks sector. As we navigate through 2024, Sissons provides his top investment picks, emphasizing the importance of judicious asset allocation and risk management in a complex trading environment.

Complex Trading Environment in 2024

The year 2024 has brought about a multifaceted trading landscape, necessitating careful asset allocation and diligent risk management. Despite frequent all-time highs in portfolios, underlying economic concerns loom large. The dichotomy between a buoyant market and a deteriorating global economy highlights the need for cautious optimism. Many index constituents are underperforming or experiencing declining year-over-year performance, underscoring the selective nature of market gains.

Currency Influences on Investments

For Canadian investors, the strength of the U.S. dollar, Swiss franc, and euro has provided a tailwind for investments in these currencies. The Bank of Canada’s recent interest rate cuts, with more anticipated, are expected to result in a weaker Canadian dollar. This depreciation boosts the competitiveness of Canadian exporters and enhances the value of international holdings for Canadian investors.

Geopolitical Factors

Geopolitical tensions, including conflicts in the Middle East, Ukraine, and escalating Pan-Asian tensions due to China’s rise, create structural tailwinds for sectors such as oil and gas, logistics, shipping, and defense. The potential re-election of Donald Trump with his "Make America Great Again" policies or a Kamala Harris administration with a different stance on global trade could significantly impact market dynamics.

Darren Sissons’ Top Picks for August 6, 2024

Sissons' top picks for this period are Accenture Pic, Crombie REIT, and Northrop Grumman. These selections are poised to leverage the current market conditions and geopolitical landscape, offering potential for robust returns.

Accenture Pic (ACN NYSE)

Accenture is exceptionally well-positioned in the IT outsourcing sector, a crucial segment as companies look to reduce workforce costs through automation, data analytics, and artificial intelligence. As the possibility of a recession looms, Accenture’s services become increasingly vital for businesses aiming to streamline operations and maintain efficiency.

Accenture boasts a remarkable 10-year annualized total return of 20 percent in Canadian dollars, highlighting its consistent performance and growth potential. The company's expertise in IT outsourcing ensures it remains a key player in helping businesses navigate economic downturns.

Crombie REIT (CRR.UN TSX)

Crombie REIT stands to gain significantly from interest rate cuts. Active treasury management on its debt stack and trailing inflation tailwinds are expected to drive higher rents, providing positive operating leverage. The relationship between interest rates and REIT profitability suggests that lower rates will enhance Crombie’s financial performance.

Crombie’s rent base is robust, with minimal exposure to high-risk small and medium-sized businesses. The majority of its footprint includes stable entities like Sobey’s supermarket franchise, banks, and government departments. This stable rent base, combined with inflation-driven rent increases, positions Crombie for sustained growth.

Northrop Grumman (NOC NYSE)

Northrop Grumman offers an attractive dividend yield of 1.70 percent, with a 13 percent annualized growth over the past decade. The company has also consistently repurchased shares, averaging a 4.3 percent annual buyback rate, enhancing shareholder value.

Geopolitical factors, including the end of the Peace Dividend in Europe and the rise of China, drive Northrop Grumman’s growth. These structural drivers are sustainable and expected to propel the company’s performance over the coming years. Since 2014, Northrop Grumman has delivered an impressive annualized total return of 19.6 percent in Canadian dollars.

Investment Strategies and Recommendations

In the current volatile market, active risk management is crucial. This involves cutting underperforming assets, trimming over-weight positions, and strategically managing portfolios to mitigate risks.

Investors are advised to raise cash reserves to take advantage of quality opportunities that may arise during market drawdowns. This strategy provides liquidity and flexibility to capitalize on undervalued assets.

Purchasing protection, such as options or hedges, can safeguard portfolios against significant market downturns. This approach helps manage risks and protect investments in volatile environments.

Conclusion

Navigating the complex market landscape of 2024 requires strategic asset allocation and risk management. Darren Sissons’ top picks—Accenture Pic, Crombie REIT, and Northrop Grumman—are well-positioned to thrive amidst economic uncertainties and geopolitical tensions. By implementing active risk management strategies and staying informed about market trends, investors can optimize their portfolios for long-term success.

Bloomberg

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