How to play a flattening yield curve?

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Market View

The US administration announced that President Donald Trump has asked the US trade representative to consider increasing proposed charges on $200 billion worth of Chinese goods up to 25%, from 10%. China said it would slap tariffs on $60 billion in US goods with levies in a range of 5%-25%. The Fed kept interest rates unchanged after a meeting this week. The Canadian dollar was 76.93 cents U.S. The week ended with the TSX down 0.1% and S&P500 up 0.8%. Canadian markets will be close on Monday for Civic holiday.

Three of the TSX subgroups slipped this week, including technology 5.3%, healthcare 1.2% and consumer staples 1.0%. Real estate and utilities were up 1.3% and 0.7%, respectively, while the others remained flat. Enbridge shares gained 1.3% after quarterly profits rose 16.5%, driven by keeping costs low and strong growth in its oil transportation business. Telus shares slipped 1.3% after reporting only a marginal rise in quarterly profit, which was due to higher average monthly bills in its wireless business. After lifting its full-year sales and profit forecast, Gildan Activewear saw a jump of 22% in its shares. Shopify shares were down 6.2% after results. The most heavily traded shares by volume were Aurora Cannabis, Bombardier and Enbridge.

 

5 from 5i

Here are five reads we found interesting last week:

-Small caps showing some weakness?

-Facebook, an investor darling: what happened?

 -How to play a flattening yield curve?

-Checklist when selecting a security to add to your portfolio

-How is your ETF provider doing?

 

ICYMI at 5i Research:

-Peter Hodson, founder and head of research at 5i Research, at BNN Bloomberg discussing his top picks

-Meet the FAANGs of the TSX

-Answers to the questions from anxious investors

- The dangers of defining yourself as a growth or value investor.

- What do you define risk as?

See our previous Five from 5i here:

Recession risk as told by charts

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