Shifting from risky and volatile momentum trades to value trades


There’s without doubt momentum trades based on trends like the strong U.S. dollar, falling oil prices, lower interest rates and the strong U.S. consumer rewarded investors handsomely in 2014. But their performance is far less steady this season so momentum as a factor has become more volatile and risky. “The swings around how momentum trades perform on a day-to-day or ...

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Investors connect the dots of financial forecasts at their perils


The growing globalization of monetary markets over the past 30 years means information in the four corners of the world is amassed instantly for the use of traders, pundits, and ordinary investors. But rather than increasing the batting average of monetary forecasters, all this extra info only adds to the noise surrounding their less-than-perfect predictions. Human nature compels us to ...

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Canada lags again: Why the country is a stock picker’s playground


A slumping economy, precarious oil prices, over-leveraged consumers and a possible housing bubble ready to burst: Canada isn’t looking so good these days. Throw inside a lack of diversification and it\’s little wonder why the country’s primary equity market continues to lag its global counterparts heading into the back 1 / 2 of 2015. There just isn\’t much for investors ...

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European markets give weary cheer as Greek talks reach deal


LONDON – European markets gave a weary cheer on Monday as eurozone leaders emerged from-all night talks in Brussels with a deal to keep Greece afloat and area of the euro currency union. European Council President Donald Tusk announced just as trading started for the week that after months of tortuous negotiations, marathon overnight talks had achieved another bailout for ...

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TSX closes higher after Bank of Canada cuts interest rate


TORONTO – Canada\’s main stock index rose on Wednesday after the Bank of Canada cut rates of interest to try to stimulate a sputtering economy, helping lift the shares of financial companies. The benchmark Canadian index wound up for a fourth straight session, benefiting now from a bailout deal reached by Greece and its creditors. The Bank of Canada cut ...

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Why it’s time for Stephen Poloz to swallow his pride and cut rates again


Earlier this year, not so good news for the economy was great news for stock markets. Just about every time some troubling economic data were released in the United States, stock markets rebounded. The S&P/TSX composite index, meanwhile, climbed by nearly five per cent in the four weeks following the Bank of Canada\’s surprise rate decline in January. Why the ...

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Home Capital Group Inc is used to critics saying it’s vulnerable to a housing pop


TORONTO – For the growing number of short sellers betting against Canada\’s uncomfortably hot housing industry, Home Capital Group Inc.’s massive stock sell off this week was as gratifying as it gets. The stock dived 19 per cent Monday and short positions shot up after the company revealed that new mortgages were much lower than expected within the second quarter, ...

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David Rosenberg: Why the Bank of Canada cut now


The Bank of Canada cut interest rates by 25-basis points, leaving the bank with one more bullet within the chamber before it might have to go non-conventional. Hopefully, we will get a fiscal response instead, but I\’m not holding my breath. Bank of Canada cuts rate, guts loonie, confirming it will likely be an ugly year for the Canadian dollar ...

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Investors should dip their toes in US$1T water market


Investors searching for the next big theme to wrap their cash around might want to take a closer look at California’s ongoing water crisis, says Beijia Ma, a thematic investing strategist at Bank of the usa Merrill Lynch. The unprecedented drought in the Golden State, that is now in its fourth year, is expected to drive a US$1-trillion market opportunity ...

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Loonie falls further following big drop on Wednesday, stock markets close higher


TORONTO – The loonie continued to slide on Thursday, reaching its minimum since March 2009 after losing more than a cent against the greenback following the Bank of Canada\’s rate cut on Wednesday. The Canadian dollar declined 0.3 of the cent to shut at 77.10 cents U.S. on the day after the central bank cut a quarter-point from the benchmark ...

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