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

Markets were weaker Monday as hopes for a U.S. Federal Reserve rate cut that would support higher stock valuations faded. Morgan Stanley cross-asset strategist Andrew Sheets doesn’t think it matters either way, and has downgraded global equities to underweight,

“We think bad data should be feared rather than cheered because it will bring more central bank easing… we think the market is too optimistic on 2019 earnings and is underestimating the pressure from inventories, labour costs and trade uncertainty … Our concern is that the positives of easier policy will be offset by the negatives of weaker growth: We think a repeated lesson for stocks over the last 30 years has been that when easier policy collides with weaker growth, the latter usually matters more for returns.”

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“@SBarlow_ROB MS is now underweight global equities: “Our concern is that the positives of easier policy will be offset by the negatives of weaker growth”” – (research excerpt) Twitter

“Merrill: "Data cools call for July cuts" – Calculated Risk

“Investors braced for global recession” – Financial Times (paywall)

“@SBarlow_ROB MS’s Sheets: Why this isn’t a mid-cycle slowdown” – (table) Twitter

“BASF shares down 7.2% after heavy profit-warning” - Reuters

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The U.K.-based Guardian news turned its attention to the Toronto condo market,

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“Figures released this week by Statistics Canada show that 37.9 per cent of Toronto condos are not owner-occupied, meaning they are either vacant, rented or used as a second property… [Andy Yan, the director of the City Program at Simon Fraser University in Vancouver] said “the data shows that housing prices have “decoupled” from income, and are instead driven by access to capital – giving investors a clear advantage over average Canadians. “It’s not about supply or demand any more,” said Yan. “It’s: who are we building for?” … John Pasalis, housing market analyst and president of Realosophy Realty, said developers are more than happy to build luxury and micro-condos for wealthy investors, rather than affordable family homes for average Torontonians. “Five years down the road, do we really need 50,000 micro-condominiums that are renting for $2,000 a month?” asked Pasalis.”

“Nearly 40% of Toronto condos not owner-occupied, new figures reveal” – Guardian

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Citi’s Global Theme Machine – the only thematic investing series I follow closely – updated clients on the top performing sectors for investment,

“Leading the current Top Quintile in June for forward attractiveness of Global Themes we find P&C Pricing and FinTech in the Top Two, with other Top Quintile Themes including CyberSecurity, Global Buybacks, Healthcare IT, Education, Cloud and Defence… In the least attractive Quintile we find a quarter are comprised of Healthcare-related Themes (BioTech, Generics & Biosimilars, DNA/Genetics, Immunotherapy) – market concerns around pricing power perhaps being evident here. Still in the bottom quintile we find Electric Vehicles, Light-Weighting of Cars, and AgTec.”

“@SBarlow_ROB C: Top-performing investment themes” – (research excerpt) Twitter

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Tweet of the Day: “@StockTwits An Instagram influencer sold her bath water for $30 a bottle. She sold out in three days. $FB stocktwits.com/davidmoadel/me… “ –Twitter

Diversion: “Formula 1: How Toto Wolff made Mercedes one of sport's greatest teams” – BBC

Newsletter: “Five lessons from a horrible investing mistake” – Globe Investor

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