Bryden Teich

Inflation. Definitely top of mind for all investors. US CPI just over 6%, plus Canadian numbers creeping up to just under 5%. The highest numbers we've seen in a very long time. Question for next year is how much pressure will central banks feel to raise rates to combat inflation? They've been very accommodative since the pandemic. But now it feels as though they're losing control of the narrative. Everyone is feeling the pressure from higher prices. At some point in the new year they'll have to get more aggressive. But they're faced with hiking rates into an over-leveraged economy, which creates other problems. The inflation question is the one that's most important to the direction of monetary policy from here.

Pushing cost inflation through to customers. With the markets being as strong as they have been, markets don't seem too concerned about inflation. But some companies are having a harder time on cost pressures. This earnings season we're starting to see the winners and losers in terms of who can push through higher prices without being affected. Growth is still high. Corporate profitability remains very strong. Markets hitting all-time highs shows it's not too concerned about inflation yet. It will all come down to monetary policy in the new year, and investors will have to assess how it will affect their portfolios.

Benefited from growth on the payments side. Well positioned to continue growing. Valuation is well beyond what he'd be comfortable paying. Payment space is getting increasingly competitive. Whole space is expensive. Hard to tell who long-term winners will be.

Top tier producer, great assets, good management, fairly priced when he bought it. Nat gas market is very tight, so the outlook is still great.

Outlook for natural gas is strong going into the new year. A name you could look at.

Position in highly leveraged nat gas stocks? If things continue to be in the sweet spot, you're more likely to get a higher return with a company that's highly leveraged. But he'd rather stick with the high quality producers, get a decent return, and be happy with that. He doesn't need to gun sling for a massive move higher.

Canadian banks. He owns TD and RY right now. Setup is interesting. OSFI recently released the handcuffs on dividends and share buybacks. Usually banks do well at the beginning of a tightening cycle. We're in a tremendously over-leveraged economy. As we go along, and rates rise, banks on the other side of this credit cycle might have a tough time. He's as underweight banks as he's ever been. TD and RY are still great franchises, but he's not that excited about the banks. They can go higher, but you have to evaluate the risks of the credit cycle.

He owns TD and RY right now. Setup is interesting. OSFI recently released the handcuffs on dividends and share buybacks. Usually banks do well at the beginning of a tightening cycle. We're in a tremendously over-leveraged economy. As we go along, and rates rise, banks on the other side of this credit cycle might have a tough time. He's as underweight banks as he's ever been. TD and RY are still great franchises, but he's not that excited about the banks. They can go higher, but you have to evaluate the risks of the credit cycle.

He owns TD and RY right now. Setup is interesting. OSFI recently released the handcuffs on dividends and share buybacks. Usually banks do well at the beginning of a tightening cycle. We're in a tremendously over-leveraged economy. As we go along, and rates rise, banks on the other side of this credit cycle might have a tough time. He's as underweight banks as he's ever been. TD and RY are still great franchises, but he's not that excited about the banks. They can go higher, but you have to evaluate the risks of the credit cycle.

Stock's taking a pause since it had a significant run from the lows in 2020. Core business is in the sweet spot. One of the better, well run companies in the space. Under-levered. Challenging environment to allocate new capital, and management is being prudent. Attractive assets. Yield is over 6%.

The fund has been buying the physical uranium and is shaking up the market. Across the world, politicians are recognizing the importance of nuclear as part of the total energy picture. Depressed prices have been tough on the sector. But now the price is up. Outlook for nuclear is positive going forward. The Trust is a great way to get exposure to the commodity, but he's much more comfortable owning CCO.

Across the world, politicians are recognizing the importance of nuclear as part of the total energy picture. Depressed prices have been tough on the sector. But now the price is up. Outlook for nuclear is positive going forward. He's more comfortable owning CCO than the commodity. He's owned CCO since December, has lightened up since it's had a great run, but retains a small position.

Very attractive business. Jumped off the page earlier this year with its good valuation and positive business thesis. Valuation is the cheapest it's been in many years, materially underpriced. Great opportunity to own it. People are uncertain about convenience stores and gas stations in view of EVs. Great track record of redeploying capital.

Incredible run through the pandemic. Starting to have significant cost pressures, without the ability to pass costs along. A couple of weak quarters. Every time the stock rallies, you have sellers bailing. He wouldn't touch it, too much damage to the technical chart.

(A Top Pick Dec 07/20, Up 18%) Industrial services technology. Good track record of deploying capital. In stable, consistent businesses. Operating as a SaaS business, high margins, "sticky" customer relationships. A unique story.