A roundup of what The Globe and Mail’s market strategist Scott Barlow is reading today on the Web
Goldman Sachs U.S. economist David Kostin shows a flair for marketing by calling his monthly report Where to Invest Now, but it’s always useful to read.
It’s also unintelligible on occasion because it’s in slide deck form with no accompanying text.
This month’s report includes the stocks contained in the strategists’ dividend growth basket, which measures the performance of companies raising their dividends relative to other stock selection criteria.
It should be viewed as a starting point for research, not as a top stock picks list. Familiar names include Verizon Communications Inc., PepsiCo Inc., Medtronic PLC and Lockheed Martin Corp.
Mr. Kostin also published a list of GARP – growth at a reasonable price – stocks.
“@SBarlow_ROB Stocks in GS's Dividend Growth basket” – (full list) Twitter
“@SBarlow_ROB GS: GARP picks” – (full list) Twitter
The International Energy Agency is warning OPEC nations of a large oil surplus next year that will depress commodity prices,
“The IEA monthly report said that, while the oil market will face a small deficit in the second half of this year, supplies are expected to surge later in 2019 and into 2020.That will leave supplies outstripping demand for Opec’s crude by approximately 1.4m barrels a day in early 2020, the IEA said, if the group maintains current production levels. …
“IEA warns Opec it faces huge oil surplus in 2020” – FastFT (paywall)
Cloud computing stocks were one of my two favourite investing themes (along with health care) for a long time, but I backed off when corporate spending in the sector showed its first year-over-year decline.
The more speculative cloud stocks are now getting smashed, caught up in the downdraft in momentum stocks, along with much of the technology sector,
“Of the 51 [cloud companies we follow], 33 have negative returns over the past week with Alphaville favourite, Domo, leading the charge with a return of -29.05 per cent. Alteryx, a data analytics provider which had doubled year-to-date, is down -20.1 per cent. Reasons for the recent sell-off abound. Some point to the problems WeWork’s mooted initial public offering … Others have opined it’s good old “profit-taking” after a hot run in these stocks over the past few years …
Momentum — buying stocks that are going up — is the crucial factor here because the cloud companies, with their sky-rocket-in-flight share prices, are some of the stocks commonly found in this particular factor strategy. And the past week, momentum has suffered one of its worst runs, particularly relative to the unloved value factor. “
“Cloud software is nuts, and it’s crashing’ – FT Alphaville (free with registration)
Tweet of the Day:
Nice chart from Goldman, summarizing this week's factor reversals pic.twitter.com/lW9x2AVtRz— Joe Weisenthal (@TheStalwart) September 12, 2019
Diversion: “6 Obscure Fairy Tales From the Brothers Grimm That Really Need Movie Adaptations” – Gizmodo
Newsletter: “How to tell if someone is a real financial expert” – Globe Investor