Looking for investing ideas? Here’s your weekly digest of the Globe’s latest insights and analysis from the pros, stock tips, portfolio strategies plus what investors need to know for the week ahead.
Good stocks to own if you’re nervous about the rally
The stock market rally since March is feeding concerns about the disconnect between stocks and the grim underlying economy – but it’s also drawing attention to some of the relatively ignored corners of the market, David Berman writes. While technology superstars and online retailers are exploring record highs in a continuing bet that the COVID-19 pandemic will disrupt work and consumer habits indefinitely, financials, energy producers and real estate companies are mired in deep corrections that, to some observers, look like attractive bargains.
These lagging sectors look like good areas to find stocks that should perform well if the economic recovery continues, yet share prices are reflecting gloom ahead. Here’s a look at a few shopping ideas, for a variety of risk appetites: Bank of Montreal, RioCan REIT and Enbridge.
I would like to get some technology exposure for my portfolio. What do you recommend?
Unless you have a deep understanding of the technology space, I would not recommend buying individual tech stocks, John Heinzl writes. A low-cost exchange-traded fund that provides diversified exposure is a better bet because it will help to control your risk. I’ll discuss a few worthy candidates among the dozens available
They include the iShares Core S&P U.S. Growth ETF, which isn’t specifically a technology fund, but nearly 40 per cent of its weighting is in tech stocks such as Microsoft, Apple, Amazon, Facebook and Alphabet. For a pure-play tech fund, consider the Vanguard Information Technology ETF. Read more about each here, plus more answers to reader questions.
More from John Heinzl:
This TSX stock has doubled this year as diners stay at home. Here’s how the CEO expects to further reward investors
With people staying home over the past few months amid COVID-19 lockdowns, many e-commerce companies have seen explosive growth – and that includes Goodfood Market, Jennifer Dowty writes. The Quebec-based company produces and delivers fresh meal kits and groceries purchased on its website from its six production facilities located across the country.
This is turning out to be a record-breaking year for Goodfood, with multiple milestones reached. In late June, the company was added to the S&P/TSX SmallCap Index, and this the company announced better-than-expected quarterly earnings results, driving the stock price to record highs. But competition is heating up in this evolving market. Here is why co-founder and CEO Jonathan Ferrari sees significant growth ahead for the industry and the company.
Gordon Pape: How to put together a gold ‘mini-portfolio’
Gold has always been seen as a haven investment in times of market turmoil. It’s no different this time around, Gordon Pape writes. I recommend a gold weighting of between 5 per cent and 10 per cent in portfolios at this time. But one reader wants to go even further. “With gold rising and equities uncertain,” he wrote, “what holdings would you recommend for building a mini-portfolio focused on gold? We already own some Franco-Nevada shares.”
It’s a good question. In fact, there are several ways to own gold and other precious metals, thus providing some degree of diversification. In all cases, however, fluctuations in the gold price will affect valuations. Here is a mix of other gold stocks, such as Barrick, and three types of exchange-traded funds.
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A smarter strategy for young, app-focused investors treating the stock market like a game
Young investors have been doing some questionable things with the new free stock-trading apps that have surged in popularity during the pandemic, Rob Carrick writes. These investors are buying a motley mix of solid blue-chips, speculative stocks and silly stuff, and that they are trading excessively. Free trading apps, notably Robinhood in the U.S. and Wealthsimple Trade in Canada, dispense with the usual $5 to $10 commission to trade stocks using an online broker. Trading is so cheap and easy with these apps that it almost becomes a game.
But free-trading apps can also be a force for good investing. Here’s how: Use them to build a super-cheap balanced-ETF portfolio. Pick a balanced ETF – they’re also called asset-allocation ETFs – and then pound money into it whenever you can. Buy a share on Monday, one on Tuesday and two more on Friday if you have the money available. Channel the urge to trade into an investment in a fully diversified portfolio in line with your personal needs and investing approach. He explains more here.
What investors need to know for the week ahead
Corporate earnings are in the spotlight in the week ahead. Companies posting their latest financial results include Amazon, Microsoft, Tesla, At&T, Canadian National Railway, Canadian Pacific Railway, Loblaw, George Weston, Rgers Communications, Suncor Energy, Coca-Cola, Lockheed Martin, Philip Morris, TD Ameritrade, American Airlines, United Airlines, Southwest Airlines and Twitter.
Economic data to be released this week include Canadian retail sales for May and new housing price index for June (Tuesday); Canadian inflation figures for June, as well as U.S. existing home sales for last month (Wednesday); U.S. new home sales for June (Friday).
Looking for more money ideas and opinions?
- The nuances of CERB are becoming clearer with time
- What you need to know about managing your finances during the pandemic
- Seven reasons it’s (finally) time to buy value stocks: Strategist
- Insider Report: Chairman invests over $1-million in this stock yielding 6.4%
- Billionaires look to dump equities after turning quick profit
- This earnings season will be awful. But there’s a silver lining
- Why investors should look past Wall Street’s ugly quarter
- What can snowbirds do with their U.S. vacation property during the pandemic?