A roundup of what The Globe and Mail’s market strategist Scott Barlow is reading today on the Web
Morgan Stanley strategists believe that corporate profit growth has peaked globally, or is about to, and companies with rising earnings will be harder to find.
A report this week selected 30 stocks they believe will be able to maintain growth. The methodology is “based on sustainability and quality of business model” and is largely proprietary, which sucks because I can’t recreate it.
One primary filtering measure is RNOA – return on net operating assets, and even with access to a Bloomberg terminal I don’t even know where to start,
The interesting picks for me are Accenture, which they see as a low risk play on cloud computing adoption, Dollar General, Northrup Grumman, Activision Blizzard, Walt Disney and Visa.
“@SBarlow_ROB Financials for MS’ top picks for sustainable growth after their expected general profit peak” – (full table of stocks) Twitter
Maclean’s has released a video called “How Real Estate Feeds the Canadian Economy.” Among the pertinent facts is that real estate-related industries now account for one-fifth of GDP, and that HELOC loans have jumped 500 per cent since 2000,
“How Real Estate Feeds the Canadian Economy” – Maclean’s
With help from an in-depth graphic from RBC, the Visual Capitalist site compares Canadian and U.S. banks,
“Banks in Canada were minimally impacted by the Financial Crisis, and have been permitted to use lower risk weights than U.S. Banks. As a result, they’ve been able to hold less capital for each loan (i.e. higher leverage) . Banks in the U.S. have spent the past number of years building capital. Regulators required U.S. banks to be conservative in their approach post-crisis. As a result, U.S. banks have lower leverage than Canadian peers. [Leverage ratios] Canada’s “Big Five”: 18.3 . Five Biggest U.S. Banks: 9.3.”
“A Tale of Two Banking Sectors: Canada vs. U.S.” – Visual Capitalist
Brent crude climbed to over US$80 per barrel Thursday,
“Asia’s demand is at a record, pushing the cost of the region’s thirst for crude to $1 trillion this year, about twice what it was during the market lull of 2015/2016. “Asia is most vulnerable to an oil price spike,” Canadian investment bank RBC Capital Markets warned in a note this month, after oil prices hit their highest since November 2014. Asia-Pacific consumes more than 35 percent of the 100 million barrels of oil the world uses each day, according to industry data, with the region’s global share steadily rising.”
“Asia oil thirst tab $1 trillion a year as crude rises to $80” – Reuters
“@dbcurren BMO: Canada’s crude #oil price (#WCS) has risen even faster than the Brent and WTI global benchmarks in recent weeks. In USD terms, WCS has surged more than 60% in barely 2 months to just above $57 “ – (chart) Twitter
“Oil hits $80, highest since Nov 2014, on Iran concerns” – Reuters
Tweet of the Day:
Diversion: “The Game Theory of Life: An insight borrowed from computer science suggests that evolution values both fitness and diversity” – Quanta