Why we can expect a decade of TSX outperformance. Plus, big banks offer tempting ‘special’ GIC rates

Why we can expect a decade of TSX outperformance.  Plus, big banks offer tempting ‘special’ GIC rates

BofA Securities equity and quantitative strategist Ohsung Kwon provided some welcome news for domestic investors, arguing compellingly that the S&P/TSX Composite will outperform the S&P 500 for the coming decade. An ongoing regime change, where deflation, low rates and globalization give way to inflation, de-globalization and higher commodity prices, is the biggest reason Mr. Kwon … Read more

What the GIC critics get wrong

What the GIC critics get wrong

Even at rates of 4 to 5 per cent, GICs are disrespected. Not so much by investors. The consulting firm McVay and Associates says balances in guaranteed investment certificates in the banking sector in June were 18.1 per cent higher than the same period last year. It’s more advisers and market strategists who are finding … Read more

CRA checks, home price declines and the best-case scenario for stocks: The business and investing stories you need to know about this week

CRA checks, home price declines and the best-case scenario for stocks: The business and investing stories you need to know about this week

A sign outside the Canada Revenue Agency is seen Monday May 10, 2021 in Ottawa. The Canada Revenue Agency says it will be sending e-notifications about uncashed checks to 25,000 Canadians this month.THE CANADIAN PRESS/Adrian WyldAdrian Wyld/The Canadian Press Getting caught up on a week that got away? Here’s your weekly digest of the Globe’s … Read more

David Rosenberg: Housing is set for a monstrous fall-off and the Bank of Canada is underestimating the economic risks

David Rosenberg: Housing is set for a monstrous fall-off and the Bank of Canada is underestimating the economic risks

As the Bank of Canada continues tightening monetary policy in the coming months, the Canadian economy will have to confront the reality that its unsustainable household debt load will act as a constraint on economic growth. And this will be at a time when the housing sector, which had been boosted by investor speculation throughout … Read more

Yes, the TSX 60 is attractively valued, but it doesn’t really matter. Plus, why REIT returns are set to disappoint

Yes, the TSX 60 is attractively valued, but it doesn’t really matter.  Plus, why REIT returns are set to disappoint

BofA Securities quantitative strategist Ohsung Kwon provided a delightful bullish case for investing in Canadian assets late last week in A New Regime: Buy Canada. In digging deeper into Mr. Kwon’s analysis, I discovered something interesting: the difference between valuations in domestic and US equities doesn’t really tell us anything about future performance. The strategist’s … Read more