A Comment -- General Comments From an Expert (A Commentary)

His mind went to the office sector. These companies were not set up for office assets, but the reality is that that's where the value is. One is HPP, which focuses on west coast office in San Fran, LA, Seattle, even Vancouver. 

For the dividend yield, look to the company's own website or to sites like the TMX.

For actual earnings yield of REITs, you have to go through filings or analysts' research notes to understand what the net operating income is, and then divide it by the enterprise value.

Real estate always has a place in everyone's portfolio, some institutions have up to 20%. 18 different property sectors, which all behave differently. Should be an inflation-protected vehicle. Today, sectors you might want to look at include grocery-anchored shopping centres, single-family rentals, industrial warehouse, manufactured housing communities in US. 

Look at supply/demand. The starting point has to be that demand is greater than supply and outpacing new construction. Ability to increase cashflow over time or to maintain/increase margins, especially during a period of elevated interest costs.

Provide quality housing at a fair market level. Unlikely to be a backlash from huge rents against apartment REITs. The solution is never rent controls, it's always supply.

Benefits of Insider Ownership:

Many of the companies we follow have high insider ownership. Of course, we like this attribute when it shows up along with other factors such as good management, a good track record of growing dividends and buying back shares, and a healthy balance sheet.  The appeal behind high insider ownership comes from the idea that insiders at a company, whether they are management, employees, executives, founders or even corporations is that they have more at stake. Because of this there is, in theory, a higher motivation from insiders for the company to perform well. This ultimately is positive for all shareholders alike.
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The S&P oscillator this morning indicated that the market was oversold--don't sell. Interest rates rose today to pressure stocks. Credit card delinquencies are higher too. As long as people have jobs, inflation will remain high. We need to see layoffs for interest rates to come down. We don't like that, but we need it.

Last Friday, there was a sell signal in his system, on the S&P. Volatility is rising. He is more cautious heading into October. He's buying GICs for clients, feeling bearish in stock. He's making money on fixed income for the first time in 13 years. He's bullish the USD, because there's a big shortage of USD globally. The US will probably go into deflation as the rest of the world inflates. They'll have to print more money since commodities are priced in USD; those world economies need USD to run and pay debt.  The USD has risen over 5% in the past 1.5 months vs. CAD. And the Chinese Yuan continues to weaken. Are many warning signs. Be cautious.

The direction of the CAD

Maybe the CAD is a trade with oil prices high, but he feels the USD will continue to strengthen. He's very bearish CAD--more inflation is coming and much higher interest rates. Nothing backs the CAD (i.e. gold), and we're tied so much to the USD. If the US deflates, Canada will inflate. CAD could easily fall to 68 cents.

oil companies

The best time to buy these companies was March 2020. We're at the end of the oil rally. These companies don't reveal how much it costs to produce a barrel of oil, but costs are surely rising. He's rather buy oil itself.

Dividend Income:

Dividend income is one of the most attractive rewards of being an investor. Because, unlike capital gains which could be subject to market volatility, the dividend received is “real money” at the end of the day, which could be either spent or reinvested.

Over the long term, companies that pay stable, consistent and growing dividends year after year even during economic downturns are attractive candidates for long-term investment. This consistency demonstrates not only the resiliency in the business model, or what investors usually refer to as competitive advantage, but also signalling that the company is well-run by a shareholder-friendly management team. As a result, these companies are usually rewarded by the market with a premium multiple compared to industry peers and the market averages.

Buying and holding companies that could grow dividends over a long period of time is a brilliant way to build generational wealth, which is the hallmark of investing. Therefore, we think investors should pay more attention to dividend growth rather than the dividend yield.
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$100 oil is possible, because the Saudis have cut supply and China will wake up and demand more oil. Also, US demand in driving season was good. Don't chase crude oil at these levels beacuse there will  be volatility. Marathon is America's bigget oil refiner, and there's a lack of refineries, but still demand. He's bullish.

You can't pick a bottom, but we had a great first-half 2023 that will carry forward into Q4. He's bullish heading into Q4 and expects yields to decline and this could end Q3 positively.

To feel confident about investing Q4, then earnings have to beat estimates. How can RBC quantify that the market has already absorbed a government shutdown, if that happens Friday?

Agreeing with Joe Terranova, how can RBC quantify that the market has already absorbed a government shutdown, if that happens Friday? But the real concern is that last week for the first time in weeks, earnings estimates ticked lower. In July, earnings estimates rose, doing the opposite.

A small group of stocks in the U.S. and Canada have lifted the market so the breadth is very poor. Most companies are flat to down especially in the small to mid-cap sector so there is lots of value and opportunity out there. There's also value in short term corporate bonds along with the best risk/reward at 6 to 8% returns in many years. Corporate bonds have had a big sell-off and this is the best opportunity in many years.