Scott Barlow
A roundup of what The Globe and Mail's market strategist Scott Barlow is reading today on the Web
BMO equity strategist Brian Belski believes Canadian financial stocks offer compelling value,
"Financials remains our largest overweight position in the TSX. Valuations are among the most attractive in the TSX … Profitability remains resilient and near peak levels. Banks in particular have displayed stable levels of ROE since 2009 and insurance has seen ROE start to recover. Furthermore, we are entering a seasonally strong period for Financials. "
"@SBarlow_ROB More from BMO on banks" – (Research excerpt) Twitter
=====
This column provides an excellent description of what actually happened ten years ago to kick off the financial crisis. Recommended for all Canadians worried that a housing slowdown will cause similar effects here (I firmly believe it won't, for reasons obvious in the column – interbank lending should not be threatened domestically).
"The secret history of the banking crisis" – Prospect Magazine
=====
Bloomberg has collected 12 charts to watch for investors looking to predict the end of the U.S. equity rally and the resumption of credit stress. The charts include cross asset correlation (the degree to which different asset classes move in the same direction), private sector debt levels, emerging market bond spreads to Treasuries, and Merrill Lynch's Bull and Bear indicator which recently provided its first sell signal since 2013.
"If We Are Racing to the Pre-Crisis Bubble, Here Are 12 Charts To Watch" – Bloomberg
=====
Fund manager Toby Nagle provided a road map for careers in finance with 10 tips for making it in finance. I agree with No. 3 wholeheartedly,
"3) Learn quickly that every job is a sales job . This was an absolute shock to me on leaving university. It is worth recalling one of my boss's mantras here: 90% of life is about managing expectations. You live with the consequences of your sale (to others and to yourself). By over-selling, you raise the bar that you must clear in order not to fail."
"Ten tips for making it in finance" – Financial News
=====
Hedge fund manager Mark Dow believes the consistent lack of trust in the post-crisis rally is acting to protect the markets,
"our collective memory of the GFC has made sentiment a countercyclical stabilizer, stretching out both the financial risk cycle and the economic cycle. Every time we get a little confident or frothy, the scolds come out and remind us of our 'irresponsibility' and we all slow our roll for a little while and digest gains. When you think the rest of the world is now going thru the same, drawn out, semi-deleveraging lower-for-longer recovery we experienced–which keeps a damper on our speed limit as well–begrudging good news could go on for a long, long time."
"Sorry for being the bearer of good news" – Dow, Behavioural Macro
=====
A rather blunt counterpoint to Mr. Dow's perspective is detailed by CNBC,
"There's a 'supervolcano' waiting to erupt beneath a seemingly 'beautiful' market, according to a portfolio manager" – CNBC
=====
Tweet of the Day: "@StuartLWallace U.S. Gasoline Stocks Buck Seasonal Trend on Supply Surge" – (chart) Twitter
Diversion: "The biggest movie from the year you were born" – Thrillist
Scott Barlow