Independent Insight

Are You Ready If a Crash is Coming?

Are You Ready If a Crash is Coming?

The stock market is getting a bit nerve-racking for some as concerns deepen that the U.S. Federal Reserve may start raising interest rates at the same time the economy is slowing down. That scenario didn’t work out so well in late 2018 and investors are getting increasingly worried about a repeat. However, those same investors have been spoiled the last 18 months or so with some spectacular gains. If the recent market moves are more than just a healthy pullback and a severe downturn is coming, are you and your portfolio ready? Here are some ways to protect your capital. 

Shopify Cracks China with JD.com Deal

Shopify Cracks China with JD.com Deal

Shares of Shopify, like most technology companies lately, are getting battered around. But it’s business as usual for the e-commerce leader as the firm has struck a partnership deal with large Chinese online player JD.com. TD Securities sent a note to its clients with some thoughts on the arrangement and what it may mean for Shopify’s prospects. Here are the hi-lights.

Nine Secrets to Buffett Colleague’s 20%+ Average Annual Gain Over 25 Years

Nine Secrets to Buffett Colleague’s 20%+ Average Annual Gain Over 25 Years

Have you heard of Lou Simpson? Don’t feel badly if you haven’t. Apparently, Simpson, who passed away this week at 85, liked it that way as the value investor, once considered an heir to Warren Buffett, didn’t seek the public spotlight. What he did do as the manager of GEICO’s investment portfolio from 1980 to 2004, was consistently deliver impressive outperformance (see Simpson’s annual returns below). GEICO was a majority-owned subsidiary of Buffett’s Berkshire Hathaway for most of that time, and became wholly-owned by Berkshire in 1996. Buffett was so impressed by Simpson’s results, he left him alone to do his thing. How did Simpson do it? Here are nine secrets to his investing success. 

10 Stocks to Own Through 2025

10 Stocks to Own Through 2025

Uncommon Sense Investor visitors continue to discover this article in our archive. So, like a deep cut song by your favourite singer, we’re dusting it off and reposting it to our front page: Unless you’re a trader, the advice to investors from portfolio managers worth their salt is to own well-managed, dependable, market-leading companies that people touch every day, and to own them for the long haul. So what do you want to own from now until at least 2025? We ask because RBC Capital Markets Global Equity Research team has put together an exhaustive report entitled Imagine 2025: Themes, Opportunities and the “Law of Accelerating Returns”. We’ve plucked some key commentary, a list of 70 stocks from seven sectors, 10 Top Picks, and a few illuminating charts.

How Money Manager & 100-Bagger Author Chris Mayer Deals with Volatility

How Money Manager & 100-Bagger Author Chris Mayer Deals with Volatility

In a sea of noise, you can always count on Chris Mayer for some calm, rational thoughts about the market. The co-founder & Portfolio Manager of Woodlock House Family Capital takes the long view and has strategies and techniques to avoid getting his emotions too involved with the state of his fund. It makes sense because Mayer, you may remember from our interview with him, is also the author of 100-Baggers: Stocks That Return 100-to-1 & How to Find Them. Here are Mayer’s thoughts about the recent turbulence in the stock market along with some interesting stats and factoids.

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Six Stocks For a Housing Boom That Could Last a Decade

Six Stocks For a Housing Boom That Could Last a Decade

Memories of the U.S. housing crash in the mid-to-late 2000s are still fresh for a lot of people. So there would be an understandable skepticism to the forecast that the current U.S. housing boom could last another decade. But there’s a convincing case to be made based on lack of supply, favourable demographics, and stronger business models for homebuilders to suggest that the strength in the housing market could last for several years. Here are the hi-lights of a Barron’s feature providing an overview of the housing market and a look at six different types of homebuilder companies that could benefit from this trend.

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Three Canadian Focus List Stocks For 2022

Three Canadian Focus List Stocks For 2022

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.

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This Chart Shows Volatility Eruptions Are Almost Always Buying Opportunities

This Chart Shows Volatility Eruptions Are Almost Always Buying Opportunities

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.

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Three Reasons the Market Has Bottomed & Will Rally Into Year-End

Three Reasons the Market Has Bottomed & Will Rally Into Year-End

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.

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Why J.P. Morgan Believes Oil Could Hit $150

Why J.P. Morgan Believes Oil Could Hit $150

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.  

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Disney’s Push Into Metaverse Has This Portfolio Manager “Still Excited” to Own the Stock

Disney’s Push Into Metaverse Has This Portfolio Manager “Still Excited” to Own the Stock

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.

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10 U.S. Stock Picks For 2022

10 U.S. Stock Picks For 2022

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. 

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Innovative Low-Risk Way to Play the Copper Boom

Innovative Low-Risk Way to Play the Copper Boom

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.

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The Rise of Chinese Bonds

The Rise of Chinese Bonds

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.

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Watch For Resurgent Amazon in 2022

Watch For Resurgent Amazon in 2022

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.

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Why Green Doesn’t Mean Clean

Why Green Doesn’t Mean Clean

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. 

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Will 2022 Be a Year of Living Dangerously For Investors?

Will 2022 Be a Year of Living Dangerously For Investors?

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. 

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Why Coinbase is a “Rocketship” Stock

Why Coinbase is a “Rocketship” Stock

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. 

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Chart Attack: Is This the Big One For Inflation?

Chart Attack: Is This the Big One For Inflation?

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.

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CEO of Sprott Backed Miner on “Once in a Lifetime Opportunity” in Newfoundland’s Gold Rush

CEO of Sprott Backed Miner on “Once in a Lifetime Opportunity” in Newfoundland’s Gold Rush

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.”

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Two New High-Growth Stock Ideas From Donville Kent

Two New High-Growth Stock Ideas From Donville Kent

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.

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This Economic Data is Indisputably Bullish For Stocks

This Economic Data is Indisputably Bullish For Stocks

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. 

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10 Small Cap Ideas with As Much As 99% Upside

10 Small Cap Ideas with As Much As 99% Upside

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. 

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