With Canadians focused on housing, is it time to consider a knock-on effect south of the border? Jeff Weniger discusses how to get in front of the “Chinafornia” slowdown.
At the risk of making a 34-year-old pop culture reference, growth stock fundamentals recall the question first posed by Wendy’s: “Where’s the beef?” As was the case in 1984, when war was declared on McDonald’s and Burger King, there appears to be a lot of “bun” in the U.S. growth stock story, but not a lot of “meat” in their valuations.
The Japanese markets are trading near their lowest valuation levels in the last 30 years, with increased profitability and better returns on capital and improving profit margins. Yet investors aren’t interested. Here is why we believe Japan is an underowned value opportunity.
Rising rates have been hindering high dividend equities in the last couple of years, but over any sizeable timeframe, the causal relationship between rates and equity factors has been cursory at best.
Ask the market what fate awaits stocks with high dividends and the answer often lies in the outlook for interest rates. When bond yields rise, the incentive to own stocks that offer higher dividends wanes, and vice versa. But with time, the concept of companies that pay dividends pays off.