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COMMENT
BOC hike today and Fed decision next month. Pretty well telegraphed, so no surprise today, or what's going to happen next month. Consensus was for 50 bps today.
Unknown
COMMENT
Where and how to invest now? Geopolitical uncertainties muddy the waters for central banks. Markets have been volatile for the last few years. Don't bet on one thing. Be very well diversified, geographically, by sector, and also by investment type with growth, value, and income stocks. That mix will let you sleep at night and stay invested in the market.
Unknown
COMMENT
Areas to avoid? He's very cautious on some of the high cyclicals, specifically the commodities that have gone parabolic over the last few months. This year has seen a transition from growth to value. So now some of the value names are higher than he's comfortable paying, and some of the growth names have tumbled. There's always an opportunity somewhere in the market. As long as your portfolio is diversified, you can shift your allocation to take advantage of opportunities.
Unknown
DON'T BUY
Depends on new listings and revenues through data feeds. Entirely reliant on its technology. Valuation is 18x earnings, but outlook for growth is flat over next couple of years. Competitive pressures from the US. He's wary. Stay away.
other services
STRONG BUY
Good hold for the dividend? Really likes. Attractive valuation. Dividend is very sustainable and has grown over time. Regulated, so interest-rate sensitive. You have to skew towards interest-rate sensitives that can grow. AQN fits that profile. Really good growth profile, solid management.
electrical utilities
HOLD
Markets have been volatile. Stick with it. Bank valuations across NA are around 11x earnings, pretty reasonable. All banks have plans for excess cash they've built up. CM growth profile is not as strong as its peers, so it always trades at a lower multiple. He prefers BNS and TD.
banks
COMMENT
Yield curve's effect on banks. Banks that have more of their income dependent on interest from loans depend more on the yield curve. Canadian banks have a mix -- interest from loans, plus income from wealth management, insurance, and other services. So Canadian banks are less sensitive than US banks, especially regional banks, to the yield curve. With the Fed planning to increase interest rates, banks that are more interest rate sensitive will benefit more from the rising yield curve.
Unknown