Looking for investing ideas? Here’s your weekly digest of the Globe’s latest insights and analysis from the pros, stock tips, portfolio strategies plus what investors need to know for the week ahead.
The Brookfield spin-offs should continue to reward income investors handsomely. Here’s what you need to know about them
If you have not discovered the Brookfield Limited Partnerships yet, it’s about time you did. Each partnership specializes in a specific area of business (infrastructure, renewable power, real estate and business partners), but they all share the same basic structure. They are all Bermuda-based, all listed in both New York and Toronto and the parent company retains an ownership stake in each. Gordon Pape writes the spin-offs have provided handsome returns since he began recommending them and h expects this trend to continue.
Read more: This ‘stable dividend portfolio’ has market beating returns with little drama
Why it’s time to bet on geezers (especially if you’re an income investor)
Since the start of the year, there has been a notable bounce in the stocks of several Canadian companies linked to, um, the golden stage of life.
Consider the retirement-home operator Sienna Senior Living Inc., up nearly 20 per cent since January. Or cemetery owner Park Lawn Corp., which has risen 23 per cent. Or long-term care provider Extendicare Inc., a 28-per-cent gainer. Even Chartwell Retirement Residences Inc., not ordinarily the most exciting of stocks, has climbed almost 9 per cent.
Coincidence? Maybe. But, as Ian McGugan writes, the simultaneous jumps may reflect an outburst of interest in stocks that are insulated from geopolitics and possible recessions. The slow-motion aging of the Canadian population is the rare trend that investors can confidently project years into the future.
Read more: This dividend stock is trading below historical valuations and CPPIB just became a major investor
Why a buying opportunity is emerging in the high-flying stock CAE
The Montreal-based company, which trains pilots on its flight simulators in more than 35 countries, has seen its share price surge 38 per cent since the start of the year. But two analysts responded to the rally by dialing back their enthusiasm over the past week, joining four others who are sitting on the sidelines. Since last Friday, the stock has been retreating and, as David Berman writes, the decline could set up the next buying opportunity.
Related: Contra Guys: Why we’re holding tight to our Transat shares in the wake of the Air Canada bid
Solving the problem of well-intentioned investment advisers who give bad advice
If you want better investment advice, ask tougher questions of your adviser.
That’s the idea behind the latest book by John De Goey, an investment adviser who advocates for investors. Mr. De Goey believes most advisers are trying to do good work for clients, but they often fail because of misguided thinking. Selling high-cost investment products and chasing investments with great returns are all part of it. As Rob Carrick writes, the book, STANDUP to the Financial Services Industry: A Practical Guide For Canadians, is a manual for how to press your adviser with questions.
Related: John Heinzl on four way to cut your investing costs
More from Rob Carrick: What is the best way to buy bonds as a retail investor
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Short sales on the TSX: What bearish investors are betting against
Canadian stocks may be up more than 15 per cent in 2019 and losses among short sellers now tally in the billions of dollars, but the shorts remain ubowed. Larry McDonald writes that their bearish bets on Canadian equities recorded a net increase of $1.3-billion over the past 30 days.
The energy sector had the biggest increase over the month, noted S3 Partners. One reason could be that insufficient export infrastructure has bottled up oil-and-gas supplies in Canada and put downward pressure on domestic prices and balance sheets. The sector with the next biggest increase was finance.
Read more: What’s better – bank stocks or a bank stock ETF?
What investors need to know for the week ahead
In the week ahead, U.S. markets are closed Monday for Memorial Day, the Bank of Canada has a policy announcement on Wednesday and Prime Minister Justin Trudeau meets with U.S. Vice President Mike Pence in Ottawa on Thursday.
Also on Thursday, Bank of Canada Senior Deputy Governor Carolyn Wilkins will deliver the Economic Progress Report at Calgary Chamber of Commerce.
And on Friday, we’ll see numbers on Canadian real GDP for Q1, Canada’s industrial product price index and Canada’s raw materials price index for April.
Companies reporting earnings this week include Bank of Montreal, First Mining Gold Corp. and Lululemon Athletica Inc. (Wednesday), Laurentian Bank of Canada and National Bank of Canada (Thursday).
Looking for more investing ideas and opinions?
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