RBC Capital Markets has released its RBC Strategy Canadian Focus List for 2022. There are 27 companies on the list. We’ve pared it down to three less obvious names in software and manufacturing, which the analysts give 12-month potential upside of between 25 per cent and 28 per cent. Maybe these stocks would fit nicely into your portfolio.
There have been several spikes of fear in the stock market the past week. Meaning the fear gauge, the Volatility Index (VIX), reflected many investors, often hedge funds, buying put options that reward them when the indices or stocks they’re betting against go down, in order to protect their long positions. This was triggered by concern about the new variant Omicron, by the possibility the U.S. Federal Reserve may accelerate its tapering of bond buying and, apparently, forced selling at certain hedge funds after having chased the market and stocks higher only to be whipsawed. But there’s some fascinating historical data about what happens after the VIX surges above the 30 mark. Check out this chart.
We’re checking back in with the invariably bullish and invariably correct Thomas Lee, Managing Partner & Head of Research at Fundstrat Global Advisors. He’s observed this week’s Omicron and Fed-driven market behaviour, along with the market internals, and has determined the worst is over and that stocks can rally into year-end. Here are Lee’s three reasons why.
Eric Nuttall is getting his day in the sun. A Partner and Senior Portfolio Manager at Ninepoint Partners, whose writing we’ve featured in our Weekend Reading emails, was wrong about oil for years despite his exhortations and pounding of tables. However, while oil has corrected recently, Nuttall’s energy fund is higher by nearly 280 per cent this year, as of the end of September, as oil and gas stocks took off. Nuttall believes the U.S. benchmark crude price can eventually take out its all-time high of $145 a barrel. JP Morgan is in the same camp saying the European benchmark, Brent crude, could hit $150 by 2023. Here’s why.
We’re always on the lookout for stock ideas, especially ones that could refresh your portfolio for next year. Courtesy of James Glassman, author and Contributing Columnist at Kiplinger, who’s been assembling these annual lists for nearly 30 years, here are 10 stock ideas to consider.
Clear your mind of anything you may know about Playboy. Get rid of any opinions or biases. Or if you have any moral qualms about the 70-year-old company then stop reading right now. Okay, let’s talk about Playboy Group…
Sponsor Content. The old axiom that the most important aspect of real estate is location can also hold true for miners. If you’re sandwiched between two large mines, one of them with more than four million ounces of gold in the ground, in a mining-friendly jurisdiction experiencing a gold rush, then chances are you’ve got a good shot of finding a healthy haul of the yellow metal. Add billionaire Eric Sprott as an investor with a nearly 14 per cent stake, a CEO with a law background and an ability to strike deals, and you’ve got the makings of a compelling story. Watch our interview with the co-founder & CEO to hear why he calls his company’s situation a “once in a lifetime opportunity.”
Disney’s stock is still being punished by the perception that the slow economic reopening from COVID will keep a lot of consumers away from the company’s resort and theatre attractions. But, that’s short-term thinking. Disney remains a world-leading media firm and is just scratching the surface of what’s possible in virtual experiences of Disney’s vast resource of intellectual property from Frozen to Mickey Mouse. Here’s why Davis Rea Investment Counsel is more than happy to continue to own Disney and to buy the stock for new clients.
Sponsor Content. Copper may in the midst of its strongest-ever cycle. That’s as demand for the metal for use in electric vehicles, batteries, and renewable energy infrastructure is expected to remain strong through at least this decade. What if we told you could get access to a company that feeds the copper market, is profitable, and isn’t exposed to geological or mining risk? On top of that, this firm’s main client is the largest copper producer in the world, it pays a dividend, and just completed a $25 million dollar share buyback. Unique, right? This company is Amerigo Resources (TSX:ARG). For much more detail, here’s my conversation with the company’s President & CEO, Aurora Davidson.
Much was made in the mainstream financial media of a pending Lehman-like crisis when Chinese property developer Evergrande was reportedly on the verge of collapsing under the weight of its something like $300 billion debt pile. Well, the Chinese regime has managed to contain the damage so far. But with Chinese economic growth decelerating from cyclical and long-term perspectives, it got John Johnston thinking about the actual makeup of government and corporate Chinese bond markets. What follows are hard numbers and charts from the Economic Advisor at Davis Rea Investment Counsel, that show the rapid development of the Chinese bond market and that foreign participation, while still relatively low, is growing.
Amazon.com Inc.’s days as a stock market laggard are numbered, according to Goldman Sachs Group Inc. After trailing the rest of its mega-cap technology peers this year, Amazon is poised to outperform in 2022 as it benefits from resurgent growth in a range of markets such as e-commerce, cloud computing and advertising, analyst Eric Sheridan wrote in a note, making the stock their top pick among U.S. Internet names.
Transitioning from fossil fuels and internal combustion engines to renewable energy and electric vehicles are worthy goals. But at what cost to the environment? Mountains of copper, cobalt, lithium, nickel and rare earth metals will be needed over the next several decades to achieve this transition. Sourcing these metals produces a less than green amount of carbon dioxide. Here is an excerpt from one of Dr. Ed Yardeni’s recent research reports about the environmental cost of going green and what can be done about it.
It’s mid-November, and, like clockwork, the first forecast for the upcoming year has landed in my inbox. This will be the first of many, not to mention the endless best and worst of 2021 lists to come. Naturally, we try to be selective. To that end, we’re presenting the hi-lights of the TD Global Strategy team’s global outlook for 2022, which carries the title, The Year of Living Dangerously.
When cryptocurrency exchange Coinbase Global went public last April, many people said it marked peak cryptocurrency. That was wrong. Bitcoin at the time was trading around $61,000. After a detour in the summer to about $30,000, the original crypto is back near all-time highs recently nearing $70,000. Ethereum is also near record levels, and the entire sector has a market value of about $3 trillion. Josh Steiner, Sector Head of Financials at Hedgeye, which offers a proprietary Bitcoin Tracker product, explains in the following video how the growth of crypto is similar to where the internet was in 1997 (see the chart), and why Coinbase is a rocketship of a stock. We also feature excerpts from Goldman Sachs’ and Morningstar reports on Coinbase following its earnings report.
If you’re old enough to remember watching Sanford & Son with Redd Foxx, you’ll recall one of the late comedian’s signature bits on the show was to clutch his chest and say, ” This is the big one. You hear that, Elizabeth? I’m coming to join you, honey.” That joke comes to mind for John Johnston when he thinks about the recent burst of inflation. The Economic Advisor at Davis Rea Investment Counsel thinks a lot of economists and investors could be clutching their chests if higher prices continue to be as persistent as they’ve been for a longer period than expected. That could portend sooner than planned interest rate hikes by the Federal Reserve, which would cause slower economic growth and lower profits for corporations. Here are some telling inflation charts preceded by some stats on previous bouts of inflation and how stocks performed, along with some commentary about not buying fear-based narratives that are being sold in various quarters.
Topicus (TSXV:TOI) has nearly doubled since Jesse Gamble recommended it in our interview on May 28 of this year. The Senior VP & Portfolio Manager at Donville Kent Asset Management, along with Founder & CEO, Jason Donville, are back with a couple of names that have caught their attention. One has just gone public, has been profitable since 2015, could double earnings in 2022, and, according to Donville and Gamble, of all of their portfolio companies, has the greatest potential upside over the next 12 months. The other is about to go public and compares favourably to long-time winner Constellation Software.
ZeroHedge often features some interesting articles that make you think. But the media site is relentlessly skeptical about the stock market. Below is a typical headline. It goes to the point we’ve been making lately about fear-baiting narratives that investors would do well to ignore. Below this alarmist story is some recent U.S. data economic data that indisputably shows economic growth is accelerating and that a crash is nowhere in sight. That means investors with well-diversified equity portfolios should be able to increase their wealth by staying the course and/or considering some of the top-rated small cap names identified in our accompanying story.
Small capitalization stocks haven’t been this cheap in 20 years. That’s based on a comparison between the S&P Small Cap 600 and the S&P 500. Have a look at some fascinating 20-year charts for the two indices examining the price-to-earnings correlation and the difference in performance. Then consider 10 small caps that analysts have pegged to return between 27% and 99% over the next 12 months.
Bank of America Head of U.S. Equity and Quantitative Strategy, Savita Subramanian, isn’t turning bullish on stocks, per se. But the noted bear is entertaining the concept that equities could continue to go higher from current record levels by as much as 36% to 6,300 on the S&P 500. While she’s still bearish, Subramanian outlines five factors that could prove her wrong.
The latest instalment of The Illumination Minute with Libby Wildman, has the Senior Partner at Davis Rea Investment Counsel dispensing some advice on how to save money.
Far be it from me to bite the hand that used to feed me. But a headline Friday morning on BNN Bloomberg perplexed me. While the network was interviewing Karl Berger of Cidel Asset Management, someone I’ve interviewed and respect, it displayed a banner headline for a good portion of the conversation, which said: BEAR MARKET WARNING SIGNS. What? That was my first reaction. Huh? That was my second. The major stock indices are near record highs. Why are they talking about a possible bear market? Here’s why that headline is a microcosm of misplaced narratives often espoused by mainstream financial media that can lead investors astray and to missed opportunities for profit.
In nine years, it’s expected nearly 70 per cent of all autos sold will be electric or hybrid from the current less than 10 per cent. How can investors capitalize on this massive trend over the next several years. Morningstar features a fascinating chart detailing forecasted growth for electric vehicles (EV) and hybrids, and four stock ideas of companies that can feed the EV supply chain.
If you’re scanning financial news every day like we do, you can get sort of numb to the “the sky is falling” type of headlines. Usually, it’s some well-known billionaire investor with a good track record exclaiming the bubble is about to burst and to run for the hills. But it rarely every happens. Sure, they’ll be right at some point but they may have to wait months or years for their gloomy scenarios to play out. These kinds of fear-based headlines sell because many investors are worried about what’s happened in the past – the financial crash, the rapid pandemic-led crash – instead of focusing on what’s working now – energy, financials, small cap value – as economic growth reaccelerates, and inflation keeps rising. But this doom-laden headline comes from legendary investor Jim Rogers, so we’ll hear him out.
We check in with Jesse Felder for his view that gold miners are criminally undervalued right now and could be coiled and ready for a big run-up that could exceed the epic move for FAANG stocks. The Founder, Publisher & Editor of the Felder Report also features a few telling charts, one of which shows how gold is closely tracking the bull market from 1995-2007.