Q: at todays prices and looking forward for dividends and growth which stock would you buy today , bip.un or ppl or none. do you think we are overbought in this market [tsx and dow] and will have a pullback come fall?
5i Research Answer:
The market has positives (low inflation, interest rates move lower, corporate earnings are strong) but we have not had really any serious pullback in a while. Thus, we would be inclined to expect one, but of course we would more or less always expect one since they can't be timed anyway. We would not expect a serious correction: confidence is returning to investors after the 'Trump Dump' post-Liberation day. The two companies noted have good cash flow in most economic scenarios, anyway. We would be fine buying either, with a preference to BIP.UN today.