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Daily roundup of research and analysis from The Globe and Mail’s market strategist Scott Barlow

The energy analysis team at RBC Capital Markets reported no changes to their top picks in the global oil and gas sector,

“Our view: In December, the RBC Global Energy Best Ideas List was down 5.0% compared to the iShares S&P Global Energy Sector ETF (IXC) down 3.1% and a hybrid benchmark (75% IXC, 25% JXI – iShares Global Utilities ETF) down 2.5%. Since its inception in February 2013, the RBC Global Energy Best Ideas List is up 137.7% compared to the S&P Global Energy Sector ETF up 26.4%.”

The stocks on the list are Tamarack Valley Energy Ltd., Topaz Energy Corp., California Resources Corp., Diamondback Energy Inc., Permian Resources Corp., Range Resources Corp., ARC Resources Ltd., Tourmaline Oil Corp., Canadian Natural Resources Ltd., Enerplus Corp., Santos Ltd., Liberty Energy Inc., Schlumberger NV, Pembina Pipeline Corp., Targa Resources Corp., Cheniere Energy Inc., Energy Transfer LP, Superior Plus Corp., HF Sinclair Corp., Marathon Petroleum Corp., PG&E Corp and Drax Group PLC.

“Top global energy ideas from RBC Capital Markets” – (table) Twitter


BMO chief strategist Brian Belski reiterated his top picks for North American income-oriented stocks.

The companies on the list are AbbVie, American Electric Power, Apollo Global Management Inc, BCE Inc., Brookfield Infrastructure Partners LP, Citigroup, Canadian Natural Resources Ltd. Emera Inc., Exelon Corp., Intact Financial Corp., National Bank of Canada, Newmont Corporation, Pembina Pipeline Income Fund, Rogers Communications Inc., and Thomson Reuters Corp.

“No changes to BMO’s North American Income recommended list” – (table) Twitter


The investment strategy team at Wells Fargo published a list of five recommendations for asset allocation and portfolio construction.

The first is “reconsider portfolio allocations.” Yields are more attractive in fixed income than equities which they believe will cause equity market volatility, and opportunities to add stocks at attractive valuation levels, during the first half of the year.

No. 2 is ‘position equities fir a moderate recession and second half recovery’. This involves being defensively positioned in high quality U.S. large cap stocks and look to move to overweight in equities later in the year. The third recommendation, “lock in higher yielding bonds,” is largely self-explanatory. The team suggests buying longer term bonds in expectation of falling inflation and interest rates through the year.

Idea four is “resist the urge to time the markets” by “[combining] a quality approach in equities, a barbell between short- and long-term fixed income assets, low correlated alternative strategies, and commodities.” Idea five is “manage volatility in uncertain markets” which involves diversifying assets beyond simple equities and bonds.

“”Resist the urge to time the markets” (Wells Fargo)” – (research excerpt) Twitter


Diversion: “Why Audiences Have Given Up on Awards Movies” – The Ringer (podcast)

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