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A roundup of what The Globe and Mail’s market strategist Scott Barlow is reading today on the Web

The latest research report from Richard Bernstein, former chief quantitative strategist at Merrill Lynch and founder of New York-based RB Advisors, contained some valuable perspective for investors,

“US corporate profits are already decelerating: 2018’s corporate tax cut helped prolong the upswing in corporate profits that began in 1Q16, but it may also be one of the factors contributing to 2019’s slowdown… earnings growth was slightly over 20%, but that growth is likely to slow to 0-5% by year-end 2019.”

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Mr. Bernstein finds the growth versus value discussion pointless,

“Growth universes are generally dominated by Technology. Value universes are generally dominated by Financials. Tech is the 3rd worst performing sector historically when profits cycles decelerate, and Financials are the 2nd worst.”

“Profits not Politics” – RB Advisors (full report)

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Maclean’s Jason Kirby provided some remarkable details regarding Canada as a favoured destination for the world’s dirty money,

“An expert panel set up to examine money laundering’s influence on B.C.’s real estate sector 'conservatively’ estimated in its report that $46.7 billion was laundered in Canada last year. Of that, the panel estimated that transactions in B.C. accounted for $7.4 billion… [the panel] it found that Alberta and Ontario have even higher levels of money laundering activity."

“Dirty money: it’s a Canadian thing” – Kirby, Maclean’s

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“CIBC economist 'not losing sleep' over Canadians' rising delinquency rates” – BNN Bloomberg (video)

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There is a new dichotomy in global energy markets whereby demand for power in general is rising but oil demand indications are weakening,

"With the outlook dim amid trade disputes - especially the one that has led to an expanding exchange of tariffs between China and the United States - analysts have revised down their oil demand growth forecasts … energy consultancy FGE this week revised down its global oil demand growth forecast to 1 million barrels per day (bpd) from 1.3 million bpd, in line with other recent downward corrections. Barclays bank said this week it had revised down its economic growth outlooks for the United States, China, India and Brazil, countries that account for more than three-quarters of global oil demand growth.”

“Oil demand growth grinding to lowest in years as global economy stalls” – Reuters

“Did global oil demand just hit a wall?” – Bloomberg

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“Extreme weather sends energy demand growth to 9-year high” – Financial Times (paywall)

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Nomura’s highly respected chief economist Richard Koo provided insight into China’s stance in the ongoing trade battle with the U.S.,

“Junior and senior high school students in the US typically learn in their history classes that one of the key lessons of the 1930s was that we must never appease dictators or even give them time. These lessons arose out of a failure to address the threat posed by Nazi Germany and a militarist Japan sooner. I think this facet of the US mindset clearly adds to the Trump administration’s determined stance on China. Now that policymakers friendly to China have fallen out of favor and those simply seeking a deal with the country have been paralyzed, it appears increasingly likely that the US will continue to step up its pressure.“

“@SBarlow_ROB Koo is ... not optimistic on trade relations” – (research excerpt) Twitter

“Beijing is rewriting its relationship with the U.S. and preparing to ride out a trade war” – Bloomberg

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“Explainer: Why proposed changes to Hong Kong’s extradition law are fueling protests” – Reuters

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Tweet of the Day:

Diversion: “Leonardo da Vinci’s notebooks” – V&A – the world’s leading museum of art and design

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