Director & Portfolio Manager at Scotia Wealth Management
Member since: Sep '11 · 2572 Opinions
The question is whether it's 1996, 1997, 1998 or 1999? That's what people are concerned about. This has been the sharpest rally that the S&P has probably had in 50 years.
Inflation data keeps coming in that's not perfect. CPI on Tuesday was a bit higher for the second month in a row. PPI this morning wasn't great. Futures were very strong this morning, but have sold off a little bit. This market's been on such a tear and investors have just been fending off some of the bad news.
The one thing needed for equities to continue to work here is interest rates. Are we going to get a drop in rates? Market thinks 60% chance of a cut by June. He doesn't know. But if rates aren't cut and the economy's still holding in, that's a good sign. Valuations are a question mark, too.
He's not sure markets will continue to go up till the end of the year. But they probably will, as there's some really good momentum here.
There are plenty of places to put capital to work right now on both the Canadian and US sides and still do well. In equities, yes, but having a balanced portfolio is always a good thing to do. When you have all these headwinds like an uncertain election outcome, wars, higher valuations, there's nothing wrong with having a certain percentage of your portfolio paying you 5% or better in fixed income.
Likes it. Nice beat with strong results. Increased dividend by 5%. Very strong balance sheet. Easy-to-execute funding plan. At 13x, cheaper than most of peers. He's modelling decent 5% EPS growth. A re-rate candidate from its acquisition.
ALA is your best pick in the space, followed by GEI. PPL and KEY round out the group of names to look at.
ALA is your best pick in the space, followed by GEI. PPL and KEY round out the group of names to look at.
ALA is your best pick in the space, followed by GEI. PPL and KEY round out the group of names to look at.
Not your highest-quality play. Trying to get approval to extend debt schedule. If approved, will add flexibility and improve free cashflows. If all goes well, may be able to reinstate dividend. But a lot has to go right. Pricey at 27x. High risk, but now would be the time to allocate some capital. A lot of the bad news is already out.
Don't own in a registered account, as you want to take capital losses if you're wrong.
Interest rates went higher, and there's a lot of competition. CRTC regulations will hurt ROE. Oversold now. At some point, it will be time to buy. Fears of small dividend cut. Long term, the ship will right. Yield is 8.6%.
Over history, there are always former darlings that take a tumble, like ENB and TRP. Eventually, it will return to $51-53 and you'll be fine. If you're not already overexposed to the name, you can buy some here.
Not the highest-quality name. Acquisition in Colorado. Problematic balance sheet, are they paying down debt fast enough for the market? Very leveraged to copper prices. If copper goes to $5, EPS growth on this name is fabulous. Don't buy right now.
If you want to put your money to work in the equities market, you want to be in high-interest savings. Absolute liquidity, while you get your 5%.
Only want to be in the bond market if you have a 1-3 year time horizon. For non-registered accounts, you want to look at coupon bonds. For example, buy them at a discount of $91-94, and they go to $100. You get paid only 1-2% on the coupon, but most of the return is capital appreciation so it's taxed more effectively without necessarily any more risk.
In a registered account, GICs are great.
A go-to name in the energy renaissance in NA. Expensive at 27x 2025 earnings. Modelling 40% EPS growth. A good name. Probably in Buy territory on the 200-day MA. A buy on fundamentals.
Rate of return may have come down slightly since then. Chose it because of high chance of recession. You got 5%, risk free, with high level of optionality, beautiful. It's a gift that we didn't have for 30 years. With chances of soft landing increasing, much of this cash has been deployed into equities and coupon bonds.
In a 70/30 portfolio, he's about 76% equities right now, as the market's had a fabulous run. But trees don't grow to the sky, so he wouldn't be surprised by a pullback in equities. The rest of this money will be available to deploy when that happens.
Bought for dividend growth in uncertain times. Trades at 19x 2025 earnings. Still sees growth around 11%. High quality, great value. Works long term. Rogers is cheaper now, so that's where he'd be putting new money.
Strong utility growth, balance sheet, good valuation. 12.5x 2025 earnings, growing around 12%. PEG ratio of 1. Decent dividend of 4% growing at 6%. Might start to slow in 2026. Getting close to the end of this run, but still a bit more to go.
Has run up, but he's not selling. More to go. 6% of your portfolio is OK. Lots of catalysts. M&A in a fragmented space. Unlocking value by spinning off truckload business. Good earnings in a tough economy. Market's expecting 21% EPS growth. Trades at 21x.