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Paul Harris.

Paul Harris is a partner and portolio manager at Avenue Investment Management. His focus is on North American and global equities.

Top picks:

Davis + Henderson Corp.
The company, which provides technology for the financial services industry, is expanding out of the traditional cheque-producing business through bolt-on acquisitions. The stock trades at 12 times earnings and has a 6-per-cent dividend yield.

Bank of America
Bank of America is one of the largest banks in the United States, holding 10 per cent of all deposits in the country. The bank continues to restructure by selling non-core assets and reducing costs through reduction in head count. It is also continuing to improve its capital base. The stocks trades at 0.7 times tangible book value and 10 times earnings. The company is buying back stock and will be increasing its dividend over the next several years.

Brookfield Asset Management Inc.
This is a global asset management company focused on property, infrastructure and renewable power. The company trades at 1.0 times net asset value, 1.2 times book value and has a yield of 1.8 per cent.

Past picks: April 17, 2012

Microsoft Corp.
Then: $31.44
Now: $31.82
Total return: +4.27 per cent

Goldman Sachs Group Inc.
Then: $116.86
Now: $144.68
Total return: +25.88 per cent

Leon's Furniture Ltd.
Then: $12.09
Now: $13
Total return: +11.28 per cent

Total return average: +13.81 per cent

Market outlook:

We believe the tremendous amount of sovereign debt outstanding globally will lead to slower growth around the world over the next several years. This will keep rates low for an extended period of time and inflation benign. In this environment we look for companies with strong balance sheets and growing dividends.

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