5 from 5i: Quantifying Diversification

Chris White May 31, 2019

Market View

US President Donald Trump threatened to impose a tariff on all good coming from Mexico, starting at 5% and increasing, until the flow of illegal immigrants across the southern border ceases. Investors await further developments on the ongoing trade war between the US and China. Global economic slowdown punched oil prices lower and gold prices rose. The Canadian dollar was 73.84 cents. U.S. S&P500 was down 2.3% this week and TSX ended the week down 1.3%.

It was a mixed bag this week, with more reds than greens. Materials irked up the most by 3.4%, followed by energy that was up 0.3%. Healthcare slid the most by 4.5%, followed by consumer discretionary down by 2.6%, real estate by 2.2% and financials by 1.5%. Bank of Nova Scotia missed estimates for the second-quarter profit. It reported adjusted net profit attributable to shareholders of $2.08 billion, compared to $2.06 billion a year prior. This was attributed to a jump in provisions for bad loans and non-interest expenses. Bank of Montreal too missed estimates for second-quarter profit, after beating estimates for seven quarters straight. The bank saw higher expenses and provisions for bad loans. Canada Goose Holdings posted its slowest revenue growth in eight quarters. It missed estimates, sending shares spiralling down. Cost of sales in the quarter rose 15.4%, while expenses increased nearly 40%. The most heavily traded shares by volume were First Quantum Minerals, Avalon Advanced Materials and Stornoway Diamond Corporation.

5 from 5i

Here are five reads we found interesting last week:

-Quantifying Diversification

-Higher risk doesn’t equate to higher return

-Phases of an investor life

-Studying investing rather than monitoring portfolio, a wiser option

-Packaging fancy and leveraged ETFs is just what investors don’t need


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