Daily roundup of research and analysis from The Globe and Mail’s market strategist Scott Barlow
RBC analyst Bish Koziol published a list of stock picks that I hadn’t seen from them before, posting their highest-ranked Canadian stocks according to factors like value, growth and momentum. For value, the top ranks (in order) go to Centerra Gold Inc., Dundee Precious Metals Inc., CI Financial Corp., Kinross Gold Corp. and Keyera Corp.
For growth, Toromont Industries Ltd. leads, followed by Quebecor Inc., Magna International Inc., Colliers International Group Inc., and Northland Power Inc. The top five for momentum players are Aphria Inc., CI Financial Corp., West Fraser Timber co. Ltd., ECN Capital Corp., and TFI International Inc.
" @SBarlow_ROB RBC top ranked Canadian stocks for growth, value and momentum” – (table) Twitter
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The monthly report from BofA Securities’ Research Investment Committee (RIS) advises clients not to worry about inflation and stick with growth stocks (my emphasis),
“How to Spend It: Crucial question for 2021: what happens to the >$2tn extra cash in household accounts? Inflation uber-bulls to be thwarted, growth-heavy equity markets to be saved by:
1. Inequality: 69% of cash (>$1.5tn) has gone to the top 20%, always the group least likely to spend; and low-income earners may not spend stimulus…we surveyed 3000 people: of those making <$30k, 53% plan to save/invest/pay off debt, vs. 2% historically;
2. Structural deflation: pandemic accelerates low-end job losses, unions now politically homeless, tech capex/automation coming to suppress wages, COVID = global baby bust.’
“@SBarlow_ROB BoA: Stick with growth and don’t worry about inflation” – (research excerpt) Twitter
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Writing for the Financial Times, JP Morgan Asset Management strategist Thushka Maharaj warned of further volatility in global bond markets,
“Where extraordinary support from central banks was a key driver for markets over the past nine months, economic fundamentals will take the lead this year. And bond market repricing sits at the nexus of this transition. .. The recent price action is a timely reminder of the challenges ahead for core fixed-income investors. As the global economy enters a new cycle, new risks are building. The prospect of sustained fiscal stimulus, rising inflation risks and diminished central bank support, collectively challenges the safe harbour that government bonds once provided… So how should investors approach these new risks? Ensuring equity exposure is geared towards a strong cyclical recovery makes sense. Investors could also, for example, increase allocations to assets that are linked to inflation and benefit from stronger growth”
“Bond sell-off is a foretaste of things to come” – Financial Times (paywall)
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Newsletter: “Investors’ ‘Moment of Recognition’ causes volatility” – Globe Investor
Diversion: “50 unreleased Rolling Stones tracks have suddenly appeared online. Why? And how?” – A Journal of Musical Things
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