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.
RBC’s ‘Imagine 2025’ list: A dozen TSX stocks it thinks will outperform
A thought exercise by RBC Dominion Securities on technology, the future and how to invest for it has produced a list of stock picks for those willing to buy and hold for the long run, David Milstead writes. “Imagine 2025,” RBC says, is an attempt to identify themes that will become the norm in seven years and the forward-looking companies that will benefit. All told, the exercise generated 69 stock recommendations, including 12 in Canada. The selections include – unsurprisingly – all five of the “FAANG” stocks (Facebook, Apple, Amazon, Netflix and Google’s parent Alphabet). At the same time, RBC has included some old-line names that may surprise.
Take shelter investors: Trump is not a bluffer on trade and all indications now suggest big trouble ahead for stocks
The U.S. launched a trade war with China on Friday as President Donald Trump’s threats continue to turn into reality, Gordon Pape writes. Somewhat surprisingly, the stock markets didn’t blink, with both New York and Toronto finishing higher. But that bravado may not last much longer. The escalating trade war is now a clear and present danger, but it isn’t the only thing investors should be worried about. All the indications suggest that stocks are heading for a fall. “I can’t predict when: tomorrow, next month, next year ... But the reckoning is coming at some point and we should be prepared.”
Investors are trading Second Cup like a cannabis stock - and some are getting burned
Second Cup Ltd. is discovering that the stock market’s madness for marijuana comes with a downside. After the Mississauga-based coffee chain struck a deal in the spring to convert some of its cafés into cannabis dispensaries, its stock price quickly shot up to their highest point in years. Within days, the shares had gone up nearly 50 per cent, to more than $4. Since then, investors have lost all of those gains, amid a volatile ride for the entire cannabis sector as the country edges toward legalization of the drug in October.
From three to 16: TD Bank significantly increases how many cannabis stocks its advisers can recommend
Toronto-Dominion Bank is getting more comfortable with the cannabis sector, Clare O’Hara and Christina Pellegrini write. After restricting this past April how its investment advisers could talk to clients about the burgeoning industry – banning staff from recommending all but three Canadian pot stocks – it has reviewed the space and is adding 16 more cannabis firms to its approved list of equities. Cronos Group Inc. and CannTrust Holdings Inc. are among those that joined the list, according to a recent e-mail sent to advisers. But advisers in the TD Wealth Private Investment Advice network are still not permitted to recommend shares ofAurora Cannabis Inc. and Aphria Inc., two of Canada’s largest cannabis growers, nor the four Canadian marijuana exchange-traded funds.
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Five top-performing stocks this year that made a mockery of expert opinions
The Canadian stocks that performed best in the first half of the year didn’t require keen insight into oil prices, interest rates, the U.S. dollar or even cannabis legalization. Instead, ignoring experts and fear-mongers proved to be a far more profitable investing strategy, David Berman writes. The top five performers in the first six months of 2018 made a mockery of expert opinions, either by rallying well above analysts’ target prices or, in some cases, forcing analysts to upgrade their lacklustre recommendations as the year progressed.
Up-and-coming places where Canadians are buying second homes abroad
We Canadians are a venturesome lot when it comes to travelling abroad. We’re also pretty bold when it comes to investing in foreign real estate. So says Michael Cobb, chairman and chief executive officer of ECI Development Ltd., which focuses on investment and vacation property development in Central America. In fact, Canadians are more adventurous than people from the United States, he says. “U.S. buyers tend to focus more on the return on investment more than lifestyle.” Still, monied Canucks aren’t strangers to mixing business with pleasure, either, often seeking out the next up-and-coming hot spots, including these destinations.
What investors need to know for the week ahead
All eyes will be on the Bank of Canada this week as it makes its interest rate announcement on Wednesday at 10 a.m. Following the release last week of recent economic growth and business optimism figures, a rate hike of one-quarter of a percentage point is seen as likely. Companies releasing their earnings during the week include Alimentation Couche-Tard, PepsiCo, Aphria, Aritzia, Cogeco and Cogeco Communications, JPMorgan Chase and Wells Fargo.