Independent Insight

Grantham Nailed Bubble Bursting Now Things Get “More Complicated”

Grantham Nailed Bubble Bursting Now Things Get “More Complicated”

Jeremy Grantham was right. The legendary investor, bubble historian and Long-Term Investment Strategist and Co-Founder of GMO, wrote about a year ago that the stock market “super-bubble” was starting to unwind. His confidence came from studying what he considers the largest super-bubbles of modern times ( excluding tulips and a few other manias), 1929, 2000, U.S. housing in 2007, the dual real estate and market bubbles in Japan in 1989, and the multiple super-bubbles that peaked around November of 2021. Grantham says these manias all have similar characteristics in part because human behaviour doesn’t change too much. Here are the hi-lights of Grantham’s most recent letter to clients in which he explains that the first leg of the super-bubble unwind is mostly complete. But now things get more complicated. 

These Companies Leading New Innovation Revolution

These Companies Leading New Innovation Revolution

Don’t miss this replay of the live Davis Rea quarterly update. Mark Bunting, Publisher & Host of Uncommon Sense Investor, and John O’Connell, Chairman, CEO & CIO of Davis Rea Investment Counsel, delve into several compelling investment topics. There are also some viewer poll questions and results. Topics and themes covered during this live show include: TOP REGRETS, MISTAKES, ERRORS IN 2022. WHAT’S COMING THIS YEAR? MAKING THE RIGHT DECISIONS AFTER CONSIDERING DIVERSE OPINIONS. IS THERE ORDER WITHIN MARKET CHAOS? HOLDING STOCKS LIKE META DURING A STEEP DOWNTURN. KNOWING WHEN TO SELL. PICKING STOCKS BASED ON INNOVATION THEMES.

Three Outlier Stocks with as Much as 78% Upside

Three Outlier Stocks with as Much as 78% Upside

Who wants to follow the herd when you can stand out? There is consensus when it comes to corporate earnings and stock price targets, and there are outliers. Those analysts who have conviction the consensus is incorrect and that certain companies will outperform or underperform based on a variety of factors that some may be under-appreciating or unaware of. We have access to some concise research on three outlier stocks that could gain as much as 78 per cent over the next 12 months.

Top Lithium Pick Could Gain 50%+ As It Nears Production

Top Lithium Pick Could Gain 50%+ As It Nears Production

We are sure you are aware of the increasing global demand for electric vehicles (EVs), the batteries required to run them, and the critical minerals needed to make those batteries. The main mineral is lithium, of which there is a global deficit, so there are opportunities for investors in the lithium sector. But some companies are more advanced than others and less risky. One example is a Canadian-listed, Brazilian-based firm that will be producing lithium by the second quarter of this year. National Bank of Canada Financial Markets Research has made this firm a top pick and believes the stock could gain more than 50 per cent over the next 12 months. This after the shares surged nearly 2,400 per cent in the last five years. First, a brief overview with some nice charts on the lithium sector in terms of pricing, supply and demand, and global sales of EVs. And then, a snapshot of why National Bank believes this company, with its focus on sustainability, can be a big winner in the big shift to green energy. 

Best Stock Ideas for 2023 From Our All-Star Roster

Best Stock Ideas for 2023 From Our All-Star Roster

Time once again for a list of compelling stock ideas for the new year courtesy of our all-star roster of eight money managers, analysts and investment newsletter writers. From real estate expert Dennis Mitchell doubling down on a large cap stock to Davis Rea Investment Analyst Matthew Aspro’s favourite U.S. bank to market-beating contrarian Benj Gallander, who won last year’s stock picking challenge with a gain of 40 per cent. Large caps to small, dividend payers to growth companies and turnaround stories, we’ve assembled an eclectic array of top stock picks for you to consider to freshen up your portfolio.

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Four Top Internet Stock Ideas

Four Top Internet Stock Ideas

Let’s acknowledge right out of the gate that 2022 was a “disaster” for a lot of stocks, especially internet stocks. Will 2023 be any better? No one knows. But it’s always worth turning to the professionals who are well-paid to try to answer those kinds of questions. We’ve got access to four favourite internet stock ideas from a research team, along with a sprinkling of other names that they like. The title of this abbreviated report is 2023 Internet Outlook: Bringing Secular Back? For those of you not familiar with Justin Timberlake’s song catalogue, it’s a mildly clever take on a hit he had several years ago called SexyBack. Secular as in these companies are driven by forces that are likely to remain in the foreseeable future and are sometimes separate from overriding economic and market trends. 

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Eight Top Global Stock Ideas for 2023

Eight Top Global Stock Ideas for 2023

Once again this year we’re updating the Canadian companies included on a list of 30 top global stock ideas from a global strategy team. There are eight on the list to kick off 2023. These names are “high-conviction, long-term” investing picks with “significant upside potential.” What follows is a summary of commentary on these global leaders from the strategy team’s analysts. 

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“World Class” Resource & Proprietary Green Technology: The Case for VanadiumCorp

“World Class” Resource & Proprietary Green Technology: The Case for VanadiumCorp

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What do you know about Vanadium?

We’ll admit we didn’t know too much about the hard, silvery-grey, critical metal until we conducted research on VanadiumCorp Resource Inc. (TSX-V:VRB), a Canadian company with a large, “world class”, nearly one million tonne vanadium and titanium resource in Quebec. Combined with that, VanadiumCorp has developed a proprietary, patented and low carbon method to extract vanadium from the rock. The company has two parallel goals: One is to develop its resource and the second is to generate revenue in 2023 by producing electrolytes from vanadium pentoxide to supply vanadium redox flow batteries (VRFB). VRFBs are superior to lithium-ion batteries, commonly used in electric vehicles, in five main ways making them highly effective in energy storage of wind, solar, and other types of renewable energy. Ian Mallory is the Chairman of VanadiumCorp, and in this conversation with Mark Bunting, he explains the company’s mission to develop its mine, supply the VFRB market, and what he believes is a historic opportunity for investors. 

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Contrarian Wins Our 2022 Stock Picking Challenge with Gain of 40%

Contrarian Wins Our 2022 Stock Picking Challenge with Gain of 40%

It can pay to be a contrarian. Especially when things escalate quickly, to borrow from Ron Burgundy in Anchorman after a ferocious battle with rival news teams. The seven participants in our stock picking challenge of 2022 were armed for the daily skirmishes of the stock market. They conducted deep research into various companies, considered the competitive landscape in which they operate, crunched the numbers to determine growth at a reasonable price, and weighed the probabilities of a healthy return. Alas, not much of that mattered because very few anticipated what transpired in 2022.

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How to Profit from Chick-fil-A’s Rapid Growth

How to Profit from Chick-fil-A’s Rapid Growth

Chick-fil-A makes more in annual sales per restaurant being open six days a week than McDonald’s does in seven. That’s according to Hedgeye Risk Management Consumer Staples analyst Daniel Biolsi. Most people wouldn’t know that fact because Chick-fil-A is a private company and always has been since its founding by the late Samuel Truett Cathy in 1967. Chick-fil-A is also one of the fastest-growing quick service restaurant chains in the U.S. with the highest customer satisfaction ratings for eight straight years. Why are we telling you about a private restaurant chain if there are no publicly-listed shares to buy? Well, you can profit from Chick-fil-A’s rock solid business model and growth… indirectly, through a public company that supplies the restaurant chain. Keep reading to find out how.

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Look to Value, Bank & Energy Stocks to Weather a Mild Recession

Look to Value, Bank & Energy Stocks to Weather a Mild Recession

What are advisers to high-net-worth clients telling them about what to expect next year and how they’re positioning their portfolios? We have a look at what a strategy team of a private bank is saying about the probability of a recession, and which sectors and types of stocks would fare best in that environment. After all, the rich and fat cats want to stay rich and protect their wealth. Get this advice…

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No Trough Yet But Emerging Markets & Japan Leading the Way Up

No Trough Yet But Emerging Markets & Japan Leading the Way Up

Many investors are anxious for the major North American stock indices to do what they want them to do instead of what they’re actually doing. That is not finding a bottom yet and continuing to drift lower as a recession in earnings is just getting started. Globally, however, emerging markets (EEM:US) and Japan (EWJ:US) appear to be further ahead in the cycle as those kinds of stocks are leading the way higher. See the hi-lights of this 2023 strategy report for which regions and countries will have the strongest returns next year and for recommendations on the types of stocks in which to invest.

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Investment Outlook 2023

Investment Outlook 2023

It’s the time of year for endless outlooks on the economy and financial markets for the new year. One has to be selective. To that end, we’re featuring the hi-lights of a 2023 outlook from a major investment house that employs and pays a lot of big brains to think deeply of what may transpire the next 12 months and what it may mean for investors. 

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19 High-Quality Stocks

19 High-Quality Stocks

The strategy team at Scotiabank is recommending investors upgrade their portfolios to high quality, defensive Canadian names given “monetary policy, earnings trajectory, and valuations.” Scotia also believes that stocks have not found their trough in the current cycle. The strategists have assembled 19 Canadian stocks to consider. We also feature bullish but tempered views from BMO’s Chief Investment Strategist, and a more bearish opinion on stocks from the strategy team at Bank of America. Plus, from the archive, Five Stocks for 2023, and 10 Stocks to Own Through 2025.

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Ponzi to Bre-X, Madoff to FTX. Why Frauds Will Always Happen & How Investors Can Protect Themselves.

Ponzi to Bre-X, Madoff to FTX. Why Frauds Will Always Happen & How Investors Can Protect Themselves.

You may or may not have been caught up in the FTX cryptocurrency implosion but what’s certain is that financial frauds are as old as time and they’ll never be stamped out. Every go-go era, once the tide goes out, has its share of frauds, each one similar but different to ones that have gone before. The perpetrators even have the same smirks. See Charles Ponzi and Sam Bankman-Fried, as an example. Why do scams keep happening and how can investors make sure they don’t get duped by one? Watch this conversation with John O’Connell, a guy who’s seen it all in his 35+ years managing investors money.

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Reset and Reload: The Case for Amazon

Reset and Reload: The Case for Amazon

Never mind. That double in Amazon’s stock from its pandemic low to its peak in the summer of last year is mostly gone now. The e-commerce and web services giant is no longer a trillion dollar company. But that’s a good thing. As Amazon restructures, reassesses and repositions, it may be time for investors to consider reloading on the stock. Like many of its products over the holidays, the shares are on sale, down about 50 per cent from their highs. Amazon is unlikely to grow like it used to but many fund managers and analysts believe that five years out, this taming of a juggernaut is merely a temporary setback. Get John O’Connell’s views on the future of Amazon, and read some analysts’ commentary.

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Analyst: These Five Stocks Have 10-Bagger Potential

Analyst: These Five Stocks Have 10-Bagger Potential

We try very hard to not have our headlines smack of hypberole. This one, we acknowledge, walks a fine line. In this case, we’re essentially the messenger as we came across an article in the venerable Barron’s, which cites research into companies that grow their stock prices by ten times or more over about a five year time frame. Nearly 50 per cent of the 175 stocks that have achieved that feat since 1980 have been in the technology sector. An investment research company has isolated five tech companies that its analysts believe have a chance at being ten-baggers over the next five years. No guarantees, of course.

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Glass Half Full As Consumers Keep Spending & GDP Remains Strong

Glass Half Full As Consumers Keep Spending & GDP Remains Strong

A widely followed U.S. Federal Reserve survey gauging economic activity was released this past week. The news would have you worry about impending doom. The facts are that the model estimate for real GDP growth during Q4 is 4.4% today, up from 4.0% on November 9. After this week’s retail sales report showed a solid 1.3% October gain, the nowcast of Q4 real personal consumption expenditures growth increased from 4.2% to 4.8%…Keep reading.

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Five Copper Stocks for the Green Power Shift

Five Copper Stocks for the Green Power Shift

There’s going to be a deficit of copper by 2030 of about eight million tonnes, according to a recent study. One CEO told me recently there’s currently only about five days of copper supply on the global market. This is as the world inexorably transitions to renewable energy and electric vehicles. Copper is one of the most-needed critical metals amid this shift as it conducts heat and electricity very well and has so many applications for use in electrical equipment, wiring, roofing and plumbing, industrial machinery, and electric vehicles. Which copper producing companies will be the winners for the rest of the decade? Here’s a list of five to consider and the catalysts that may drive their stocks, which are higher the last five years by between 52 per cent and 220 per cent.

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Five Best Dow Dividend Stocks to Buy Now

Five Best Dow Dividend Stocks to Buy Now

How about that monstrous rally for the Dow Industrials last Thursday amid strong moves among all of the major North American stock indices? Was that a classic bear market rally triggered by many investors covering their short positions  and others giving in – yet again – to a fear of missing out? Maybe. But the big gains hi-lighted some of the stocks within the Dow 30, especially the dividend payers. I sat in on a David Rosenberg speech this past week at a conference. The President and Founder of Rosenberg Research was unsurprisingly bearish and expects a recession next year. But interestingly, under that scenario, Rosenberg pointed to four areas where investors could protect and possibly grow their portfolio. They were, in no particular order, government bonds, gold, cash, and – dividend aristocrats, the kind of strong, leading companies that consistently pay and grow their dividend payouts. The Dow contains many of those types of firms. Below, we take a look at the five top-rated dividend stocks in the Dow.

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Growth or Balanced Growth. Which is Right for You?

Growth or Balanced Growth. Which is Right for You?

During our Video Investment Series we’ve covered why you’re investing, asked you how much risk and volatility you can tolerate, which buckets to invest in, and many other rudimentary but crucial investing principles. John O’Connell has guided you through the difference between investing and speculating, how to protect your capital in inflationary times, and how much income and capital appreciation you need. Now, as we wrap up our series, the Chairman, CEO & CIO of Davis Rea Investment Counsel explains the differences between balanced growth and growth portfolios. Which strategy is right for you?

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How to Preserve Your Capital in Inflationary Times

How to Preserve Your Capital in Inflationary Times

Preserving your capital should be your first goal. But how you preserve your money is not always easy, especially now with prices more inflated than they’ve been in decades. Learn how to protect and grow your capital in the latest instalment of our video investing series.

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