A roundup of what The Globe and Mail's market strategist Scott Barlow is reading this morning on the Web
Canada enjoys the strongest economic growth in the G7 and yet global investors appear to be betting that this is as good as it gets for the Great White North.
Short seller Carson Block of Muddy Waters Research is prone to hyperbole, but he likely has a point about the twitchiness of domestic investors after the Element Fleet Management Corp. mistaken identity sell-off Wednesday,
"'When I see a reaction like we saw to a stock that I had never heard of because people were evidently concerned that we were about to short it, that tells me that maybe we're at a point in Canada where investor denial is just starting to crack,' he said."
Record short positions on the loonie remain the norm and the S&P/TSX has been the second worst performing market behind Israel.
"Muddy Waters Founder Sees 'Real Problems' With Canada" – Bloomberg
"Bears Drive Canadian Dollar Shorts to a Record High" (May 25th) – Bloomberg
"Why Investors Are Running Away From the Fastest-Growing G-7 Economy" – Bloomberg
The business practices of domestic banks are under more scrutiny in a story that seems to be steamrolling,
"Former staff to blow whistle to MPs about bank practices" – CBC
Mary Meeker, a former analyst at Morgan Stanley and now partner at venture capital firm Kleiner Perkins Caufield & Byers, is among the most respected strategists in the global technology realm. Ms. Meeker's annual (and free to read) Internet Trends report is huge both in size and influence,
"The report … dedicated 31 pages to 'Healthcare @ The Digital Inflection Point' and came up with some amazing stats about how technology and the Internet are transforming the sector. At the top of the list, and perhaps the most remarkable number, is the way data is helping develop new medicines. Meeker said the digitization of medical data means that medical knowledge now doubles every 3.5 years versus doubling only every 50 years in 1950."
Business Insider helpfully lists the current top 14 stock picks from Goldman Sachs research. The list is headed by Flir Systems, Xerox (yes, that one surprised me too), Range Resources, TechnipFMC, Tiffany & Co. and DXC Technology.
"GOLDMAN SACHS: These 14 underappreciated stocks are set to take off" – Business Insider
Reuters details more Ponzi-like elements of China's economic growth strategy,
"'Ghost collateral' haunts loans across China's debt-laden banking system" – Reuters
Tweet of the Day: "@SBarlow_ROB DB: Gold is expensive no matter what you think it's for" – (research excerpt) Twitter
Diversion: There's some NSFW language involved, but The Ringer's Mark Titus, a new hockey fan, wrote a column on the Stanley Cup's Catfishgate that is too good not to include today,
"All of this because some guy orchestrated a crime that's as victimless as it is hysterical: stuffing a catfish into his pants and then tossing it over a piece of plexiglass. I'm not saying this type of thing should be encouraged, since if everyone went about stuffing catfish into their pants, society as we know it would crumble. It's just that people treating this as seriously as [an] … assassination attempt is the funniest thing I've seen in a long time. I cannot get enough of this story."
"You've Been Catfished" – Titus, The Ringer