A roundup of what The Globe and Mail's market strategist Scott Barlow is reading today on the Web
Bank of Montreal chief strategist Brian Belski published an exceedingly bullish forecast for Canadian investors, predicting a substantial and strong rally for the TSX,
"Come on Canada -- Believe!!! A higher C$ and rising bond yields are scaring investors in our view, inciting the exact opposite result of what should be happening. Shouldn't a higher C$ and rising yields mean that the Canadian economy is doing better?!?!? Ah, yes, BUT – the "negative-first" mantra of Canadian-centric investors is once again leading with emotions versus reality. Thus, we believe a BIG bounce is coming once calmer heads prevail – one that should be led by Banks and perhaps Energy."
"@SBarlow_ROB BMO: 'BIG bounce' in store for Canadian equities" – (research excerpt) Twitter
See also: analysis from HSBC supports Mr. Belski's energy call, "@chris1reuters Near-term #oil demand growth looks strong and likely to support prices, says @HSBC " – (charts) Twitter
"Oil near five-month high in most bullish week since July" – Reuters
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Not that I'm expecting a global market blow-up in the near term, but the ongoing hunger for any type of yield has investors climbing over each other to gain access to the riskiest of fixed income sectors. From the Financial Times,
"Cash has flowed into emerging markets, where securities typically offer higher yields, and investors have seen a flurry of debt-raising by countries and companies keen to take advantage. However, asset allocators should balance their appetite for returns with another factor: volatility. In the past decade, some of the best-yielding asset classes have also shown the greatest volatility."
"Five markets charts that matter for investors" – Financial Times
"@SBarlow_ROB Risk tolerance in global fixed income via @FT ft.com/content/c4de73… " – (chart) Twitter
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Two columns, one from a prominent economist, and another from a pseudonymous asset manager highlight the importance of perspective and objectivity in investing. Are there stock tips? No, these are more important topics than that in my opinion,
"Economic roots of post-truth politics" – (brief NSFW language) Stumbling and Mumbling
"Surviving the behavioural arms race" – Polemic's Pains
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I don't care whether this works out for pension holders or not, it should get the immediate attention of U.S. regulators,
"Down $20 Billion, Boeing Stuffs Pension Fund With Its Own Shares" – Bloomberg
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Tweet of the Day: " @BrettEHouse Only 1/3 #Canada households have mortgages; only a qtr variable; amongst 5yr fixed, half will reset at lower rates. #boc2021 #cdnecon 8/n " – Twitter
Diversion: There are still people who deny climate change but a more than 40 per cent increase in carbon dioxide in the atmosphere is a verifiable fact. One researcher believes the change is making the global food supply worse,
"The great nutrient collapse" – Politico