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COMMENT
Markets. Nice change to see a positive day or two, especially after last week and Monday. We're in for volatility for some time. War in Ukraine has exacerbated problems that were already becoming evident coming out of the pandemic. Real pressures on inflation, shortages in commodities whether energy or materials or agriculture. Global supply chain issues are not fixed. It really questions globalization of businesses, because it means we don't have strategic assets available when they're needed. We're in for a period of adjustment for a while. Investors are focusing on areas that are perhaps more receptive to inflation. Renewed focus on security of energy supply. All these things are good for those in the Canadian market.
Unknown
COMMENT
Where to invest? He's tried to focus on the longer game. As a value investor, he buys stocks that aren't quite as exciting in growth markets, but can withstand the forces of volatility that descend. Canadian market is a good place to be looking right now, given our exposure to resources with energy and materials. Financial sector is fairly strong, so not a bad place to look. Globally, you want to find companies that can pass through inflationary trends. A lot of companies will have trouble doing that, especially as they have to restructure their business lines to access supply. We're really coming into a stock picker's market.
Unknown
BUY
Interest rates going up is generally good for insurance companies. Extremely well managed. One of his favourites in the industry. He'd recommend it today. Priced at the right level now. Yield of just over 4%.
insurance
PARTIAL SELL
Hold or take profits? World is focused on food supply, and fertilizer companies have been the beneficiaries. Agriculture has further to go, but fertilizer companies look expensive. Never a bad idea to trim. More downside than upside from here.
agriculture
WEAK BUY
A good, well-managed company. All the materials still have a fair amount of upside. Over 1x price to book. Not a bargain, fairly priced. You want exposure to the materials. Modest yield.
Mining
DON'T BUY
Large projects might be harder to finance with interest rates shooting up. The group's in a good position to do well over the next number of years. Has come back from its troubled days. Likes exposure to the area, but this one is more expensive than peers.
contractors
BUY
Big fan. Stronger and better as they've diversified. Inflation may cause a pullback, due to concerns about customers' ability to pay for discretionary services such as cosmetic surgery and fitness. For the long term of 3-5 years, no qualms about buying at these levels.
Trust, Savings and Loan