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We've seen ups and downs on the trade front since April, so it's hard not to look to that prior playbook and say that we're probably going to come up with some kind of solution. Natural to get volatility in periods like this, especially after hitting so many record highs over the last number of months. The S&P is almost positive again today, so things are settling out. Expectations that agreements will be reached on a lot of issues that are at the forefront.
When you strip all that headline risk away, we're left with quite a healthy market. Earnings growth continues to accelerate. Jobs market is OK. Interest rates seem to be stabilizing and coming down. That sets up really well into the end of the year, and especially into Q1 of next year.
He is seeing some of them revive, but there's still a plethora of opportunities there. His firm spends a big chunk of time on small- and mid-caps. This environment sets up really well for the other 493 of the S&P 500. He's had no trouble finding undervalued names in both Canada and the US with lots of catalysts, including growth tailwinds and a stabilizing interest rate environment.
He also like high-quality equities. In Canada, the high-quality factor has had a pretty weak few quarters. So there are a lot of opportunities there.
We're seeing contract after contract. Maybe there's overbuilding there, but it's too early to say. Earnings growth has been quite robust in that sector. It's not something his team is afraid to be involved in via the NASDAQ, certain Canadian equities, or utilities and natural gas.
It's going to create a large tailwind, and there are many areas of the market you can get involved in. He's not chasing some of the big momentum names. Capex spending is real; it'll impact earnings growth in a positive way and should be good for the market as a whole.
Great year, so valuation has expanded. Shedding lower-growth businesses, focusing on medical devices and pharma. Those 2 areas are higher-margin businesses, so success would mean multiple could continue to expand. Legal overhang diminished.
If you already own it, you can hold it for dividend growth and potential upside. If you don't own, buy in via an ETF.
Some disappointment on the acquisition price. He'd be out of the name or tender for cash. That way, you can step back and reassess the situation. This is often his firm's tactic in these situations. Some risk, as you don't know how the Sunoco shares will behave once the deal closes.
Won lots of contracts during pandemic, huge tailwind. Multiple has come back. In current environment, countries are spending more on gas masks, overboots, etc. Absolutely believes demand will pick up. Large contracts to be won, but the bid process has lots of moving parts. Quite bullish on the name.
Really great job building out the business, upgrading loan portfolio, adding adjacent businesses. A complicated business, difficult to get a handle on what's going on under the hood, so you have to have a lot of faith in management.
Short report highlighted that issue. That's why his firm doesn't get into complex companies that use the balance sheet to finance things. Multiple is still full despite the drop. On the sidelines. Better opportunities elsewhere.
The stock hasn't actually dropped that much. Not a stock split, but there has been some corporate activity among the Brookfield names. You'll have to read the corporate information to get the details. Your platform will eventually adjust the numbers appropriately.
The reasons you held BN yesterday are the same reasons to hold it today.
We have a great industry for Canadian banks. Outlook in Canada is a bit rosier than it was 6 or 12 months ago. Some of the provisions for credit losses have started to come in, investment banking has picked up, lots of levers to pull to earn more capital. Expects all that to continue for the rest of the year. He'd continue to hold the banks.
Typically, if you buy the Canadian bank trading at the lowest multiple it will revert to the mean of all the banks. BNS is in that bucket right now as a relative underperformer.
Outlook in Canada is a bit rosier than it was 6 or 12 months ago. He'd continue to hold the banks.
It's performing well because everything else is performing well. Should do fine as it goes through an operational turnaround, and this could lead to more upside. Instead he holds RY for almost all clients.
Outlook in Canada is a bit rosier than it was 6 or 12 months ago. He'd continue to hold the banks. Holds this name for almost all clients, and hasn't trimmed that position in many years. In fact, he adds when it sells off. It's his preference to own the highest-quality bank and ride it through the ups and downs, rather than switching among the banks.
Quite the compounder, albeit a sleepy one. Diversified businesses, though they don't all work in sync. Management has a private-equity mindset -- buy undervalued companies, deploy free cashflow within the business or make acquisitions. Firing on all cylinders. Bright outlook.
