Stock Picks With Northern Exposure
If you ask him for directions, Andrew Pyle will point you north.
The wealth adviser for Scotia MacLeod Group and the Armstrong Pyle Group sees major opportunities for U.S. investors in Canada.
He believes it's not just Canada's wealth of natural resources that should attract investors.
"Resources represent more than 51 percent of the [Toronto Stock Exchange]," he told CNBC. "At the same time, when you dig below that...financials have come off sharply, and we think that's where the real value is right now for American investors."
Pyle says Canada's relatively small number of banks is an advantage for investors.
"You've got the big five Canadian banks: Royal Bank, CIBC (Canadian Imperial Bank Of Commerce) , TD (Toronto Dominion Bank), Scotiabank (The Bank Of Nova Scotia), and BMO (Bank Of Montreal)," he said. "All five of those have...been pushed down a lot in value, and all five really representing some pretty decent opportunities going into 2009."
He thinks longer-term when it comes to resources, but he has some promising names in that space as well.
"You want to look for the large-cap names like Encana, Talisman, Suncor, Petro Canada - all of which have fairly diversified operations, so you're not just looking at crude oil. You're looking at crude oil, natural gas, and downstream," he said.
Another sector he recommends is insurance.
"You've got a very well-capitalized insurance-company sector in Canada, the likes of ManuLife, Sun Life," he said. "Both of them do have significant operations in Asia, so if you're looking for that play into the emerging markets, but still want to have a relatively sound company in the financial sphere, those two companies do stand out."
Disclosure information for Andrew Pyle was not immediately available.