5 from 5i: Expectations for investments

Barkha Rani Jan 25, 2019

Market View

The US Senate continues to look for a way to end the government closure that entered its 35th day today. The US Senate has rejected two shutdown-ending bills. Major Indices are trading in green, including the European and most Asian shares, attributed to strong US earnings, despite concerns with the slowing global economy and US-China trade dispute. The US sanctions threat on Venezuela. The Canadian dollar was 75.42 cents U.S. Both TSX and S&P500 ended this week flat. 

Only 2 of the 12 subgroups ended the week in negative territory. Healthcare jumped by 5.8% and Materials were up 3.1%, Consumer discretionary by 2.5%, and real estate by 1.7%. Energy and Consumer Staples were down 2.6% and 0.9%, respectively. Canadian Pacific Railway, the country’s second-biggest rail operator, reported earnings of $4.55 per share, beating estimates of $4.22. Net income was down by 45% to $545 million. The company has forecasted double-digit earnings growth for 2019, due to strong pricing and growing crude shipment and demand for other commodities. Revenue rose 17% to $2.01 billion this quarter. Rogers Communication posted an increase in net income to $502 million this quarter from $499 million the year prior. The company raised dividends by 4.2%. Tim Horton's parent company, Restaurants Brands International, and MTY Group raised dividends by 11% and 10%, respectively. The most heavily traded shares by volume were Aphria, Green Organic Dutchman and Bombardier.

5 from 5i

Here are five reads we found interesting last week:

-What we should expect from our investments

-Which sectors have proved their ‘value’?

-How are junk bonds doing this year?

-When do buybacks happen?

-Market-cap weighting might not always be the way to go

Bonus: Alternative investments in pension funds have been a bad move



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Feb 4, 2019
I invest mostly in the gold sector … should I move to something better … ?
Jan 28, 2019
I read the "what we should expect from our investments?" article. I do not think one has to be "a god" to outperform the tsx every year. A carefully researched portfolio of 5 or so stocks ought to work. But you can only do this if one is prepared to really research the company and the industry. I look at stock investing as taking a part ownership of a company with the view that once you have decided to buy into the company you don't sell unless you need the money for something else or something material in the investment or industry has gone wrong .
Kurt W
Jan 26, 2019
The first article listed dates from 2014. So how Buffett done since then?
Jan 26, 2019
Thanks for the posting of these articles.
For me, it seems to boil down to the need to look at individual stocks value and not be swept up by market hype.