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.
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.
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.
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.
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.
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.
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.
At first glance, a growth portfolio is suited for a younger investor who has the benefit of a long time horizon to handle the added risk. Not so fast. Growth stocks for older investors can be perfectly fine. Find out why as we wrap up our Video Investment Series.
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?
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.
If you missed the live show, here’s your chance to watch the highly informative Davis Rea Investment Counsel conference call. Insight on the economy, inflation, interest rates, demographics, stocks, bonds, investor behaviour, plus some very illustrative charts. It’s all there. Get the details from the investment firm’s CEO, Economic Advisor, and Associate Portfolio Manager, about the strategies deployed that allowed Davis Rea equity and fixed income funds to outperform during the quarter.
Ed Yardeni has drawn fascinating comparisons between the technological innovation during the 1920s and the cutting edge technology trends of this decade. Find out from the President of Yardeni Research why another “roaring ’20s” decade is still possible for stocks despite the epic “everything” bubble that burst late last year and the subsequent decline we’ve seen since. Also, hear about Yardeni’s new service for retail investors called QuickTakes.
Part two of our interview with Ed Yardeni sees the President of Yardeni Research explain how the U.S. is in a rolling recession, the possibility of a hard landing, the prospects for earnings, and when the major stock indices may hit a new high.
John O’Connell on extreme bearishness, compelling stock valuations, and the potential for excellent future returns. The Chairman, CEO & CIO of Davis Rea Investment counsel believes the stock market is setting up long-term investors for some attractive gains. But that the S&P 500 may need to go down another 10 per cent or so before the worst is over.
Dr. Ed Yardeni considers himself an “optimist at heart.” But that doesn’t mean the President of Yardeni Research is wishing the U.S. Federal Reserve will “pivot” away from its interest rate tightening cycle. And it doesn’t mean Yardeni is hoping for the major stock indices to bottom. Instead, he’s tracking the data. Yes, he believes there are some “tremendous opportunities” for long-term investors and that a “roaring ’20s” decade is still possible after the “Mother of All Melt-ups. But he’s also pragmatic enough to see what he calls a “rolling recession” in the U.S. and has an opinion on the possibility of an economic hard landing. In part one of our interview with Yardeni, who has a wide following among institutional and retail investors, he gives us insight into why “lots of things are breaking” globally, why Fed Chairman Jay Powell is determined to slay inflation, where financial instability could emerge, the two “huge mistakes” the Fed made (Yardeni has written two books on the central bank), and many other cogent comments.
How much interest income, dividend income, and capital appreciation does your portfolio require? It depends on a number of factors. John O’Connell guides investors through that decision-making process in the latest instalment of our Investor Education Series.
How are you coping with the wild swings in the stock market? How much stomach do you have for volatility and risk? In part five of our Investor Education Series, here are four ways to determine your risk tolerance.
This may not be the message you want to hear but we try to bring you a variety of points of view. The following opinions eventually may not be correct but they’re worth listening to. That’s because they come from a strategist team that is paid to monitor global economic data and assess how it will affect financial markets. According to these strategists, there is more pain to come for the economy and stocks. They also say, based on historical evidence, that inflation may eventually decline to the U.S. Federal Reserve’s and Bank of Canada’s preferred level of two per cent, but that could take 10 years. Here are three reasons why.
Investors sometimes struggle with their emotions in differentiating between a loss of capital on paper, say a 20 per cent decline on your favourite stock, and with a permanent loss of capital. In this instalment of our Investor Education Investment Series, John O’Connell explains how investors should approach both scenarios in different ways.
If you want to speculate in the stock market, knock yourself out. Jesse Livermore was a famous speculator about 100 years ago who made several fortunes but also lost several and his ultimate fate was a sad one. In the 1983 movie Trading Places, characters played by Dan Aykroyd and Eddie Murphy get rich in an elaborate scheme short-selling orange juice futures after they had created a speculative buying frenzy. Some people can speculate and do well but most can’t. So, what’s the difference between investing and speculating, and owning a business versus taking a shot at something? John O’Connell explains in the latest instalment of our Investor Education Investment Series.
Stop. Just stop. The narrative that the Federal Reserve is going to “pivot” and slow its inflation-fighting interest rate tightening cycle or pause or even start cutting rates soon is not going to happen. For one, the U.S. two-year yield, an indicator of expected near-term interest rates, is higher by about 30 basis points in the five days since various market players and many in the financial media revived the dovish Fed pivot story. A stronger than expected September non-farm payrolls number has boosted the two-year yield another six basis points, as I write this….Keep reading…
You’ve heard the term asset allocation but what does it actually mean when put into practice? In this instalment of our ongoing Investor Education Investment Series, John O’Connell, Chairman, CEO & CIO, Davis Rea Investment Counsel, explains why most investors should allocate their money into these three investment buckets.
Hedgeye Risk Management’s Keith McCullough started warning clients and subscribers about a bear market crash in January of this year. His theory has proven correct, based on data, and rooted in a belief that the most epic bubble of all time would burst, and that the Federal Reserve would make the mistake of tightening interest rates into a slowdown. Now, the CEO and founder of the research firm and his team have put together for their best clients a 160-slide quarterly investment outlook macro themes report. Here are five of these charts that nicely sum up why the global economy is teetering and financial markets are in turmoil.