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.
Dollarama’s stock dive Thursday hints at a deeper skepticism about its fortunes than meets the eye
Everyone knows spring arrived late to Canada this year. And yet, here we are in the first week of June, met with a weather-related earnings surprise from Dollarama Inc., the retailer that almost always exceeds expectations. How in the world did markets get caught off guard on Thursday, with the shares falling nearly 7 per cent? And, more importantly, are investors overreacting?
Related: This week’s investing stars and dogs
What investors need to know for the week ahead
Events that may move markets this week include the summit between U.S. President Donald Trump and North Korean leader Kim Jong-un, scheduled for Tuesday in Singapore (Monday evening ET). The U.S. Federal Reserve meets and is expected to announce a rate hike on Wednesday. Economic data to be released include Canadian existing home sales and average prices for May and U.S. inflation figures. Companies including Roots and Transat AT are set to release earnings.
This simple TSX stock-picking technique has generated an average 18.4% annual return over the past 16 years
The stock market can be a complex and intimidating place, but you don’t need an advanced degree to succeed at picking stocks because some of the simplest techniques have yielded the most generous returns. One of the simplest ways is to buy companies with lots of earnings when they trade at relatively low prices. That is, to buy stocks with low price-to-earnings ratios (P/E).
This TSX tech stock has soared 870% since its 2015 IPO - and Goldman now says buy
Shopify Inc. is the second-best-performing stock in the Canadian benchmark index this year, rewarding investors who have bet on a good growth story but also raising concerns about the stock’s valuation, David Berman writes. How long can Shopify continue to dazzle?
These stocks yield more than 5 per cent – and raise their payouts
Cheer up, dividend investors, John Heinzl writes. Sure, many dividend stocks have been clobbered by the recent surge in interest rates. but I’d argue that many dividend stocks are actually safer now than they were six months or a year ago. That’s because prices have already dropped to reflect rising rates and other worries investors might have. With that in mind, here are three dividend stocks that yield more than 5 per cent. As a bonus, all three companies have raised their dividends in the past year.
What a $3-billion Mawer small-cap fund manager is buying and selling
When it comes to the global small-cap mandate he oversees, Christian Deckart isn’t ignoring the macroeconomic environment, but it’s not driving his decisions. “We think we’ll make money for our clients by owning good businesses,” he says. The Globe and Mail spoke with Mr. Deckart recently about some of the international small caps he’s been buying and selling and one he exited too soon.
It’s not a waste to keep money parked safely
Here’s a question to ask yourself if you’re torn about whether to safely park money you’ll need in the next 12 to 60 months in a high interest savings account, or invest in something riskier: Would you feel worse if you missed out on the opportunity to make a return better than the 2 to 2.3 per cent that high interest accounts top out at, or if you lost a chunk of your savings because your investment turned out badly? If they answer honestly, Rob Carrick writes, most people will say that losing money would bother them more.
The best investing and personal finance article I’ve read in 2018
Morgan Housel from U.S. venture capital firm Collaborative Fund published a tour de force, Scott Barlow writes. “It is easily the best thing I’ve read this year combining investing and personal finance, and I definitely recommend reading the whole thing.” Here’s a sample: “ It helps, I’ve found, when making money decisions to constantly remind yourself that the purpose of investing is to maximize returns, not minimize boredom. Boring is perfectly fine. Boring is good. If you want to frame this as a strategy, remind yourself: opportunity lives where others aren’t, and others tend to stay away from what’s boring.“