COMMENT
Markets. Inflation is the primary factor affecting markets today and its effect on interest rates. We're entering a volatile period, which could last a while. We started with a supply shortage, which led to inflation, and the central banks are trying to stifle demand by raising interest rates. The real question is whether we'll go into recession, and he thinks we will, and the further question is how deep and how long. Problems affecting markets will take some time to work out, such as the war in Ukraine, de-globalization, and security of supply. It will be an interesting time, and value will become much more important. The emphasis is going to be on real, near-term, high-quality earnings and good balance sheets.
Unknown
COMMENT
Can stocks rise along with interest rates? He supposes they can for companies that can pass through costs, such as grocery stores. But no matter the company, they're being hit with costs on the supply side. Can they raise prices as fast as costs are rising? "Effective cost control" is a buzzword for management these days, and often there's not a lot they can do. Also pressure on wages as the cost of living rises. It's going to take some time to work out. Governments have not talked yet about wage and price controls. He's hoping we can get to a more normalized interest rate period. Since the financial crisis, we've been living in an imaginary world when it it comes to interest rates. Those days are likely gone.
Unknown
BUY
One of the benchmark stocks in Canada. Bullish on energy as a group, despite the great run. Higher oil prices will persist. Move to electric will take longer than believed. Oil prices have come off recently, due to recessionary fears, but prices shouldn't go much lower.
integrated oils
DON'T BUY
Question is whether the Shaw deal will close. Competition Bureau is lukewarm. Rogers keeps making more concessions, and the deal keeps getting pushed out. Don't invest today. Prefers BCE for stability.
Cable
BUY on WEAKNESS
Latest FDX report gave pause. Pretty good handle on the markets in which they compete. Pullback may be a good opportunity. Well managed. Transformed themselves.
Transportation
HOLD
Short? Reticent to short. Past year has seen demand for drilling and day rates go up, and this should persist for a while. Good performer. Content to hold.
oil / gas field services
HOLD
Management has done well transforming to less economically sensitive products. Asian exposure might affect it in the near term. Profitable. Expects dividend increases. Trades in a range, so now is not the time to sell. Yields well over 5%, fairly secure.
insurance