Thursday, September 14, 2017

Money Show 2017 - Gordon Pape

Gordon Pape spoke in the opening ceremonies on "Where Next? The Outlook for Canada in 2018". He said that for the economy we had
  • 1.1% Growth in GDP in the second quarter of 2017
  • 0.9% First quarter of 2017
  • 1.9% Increase in Household spending
  • 2.3% increase in exports of goods and services
  • 65,700 increase in manufacturing jobs, and
  • 6.3% unemployment, which is the lowest since 2008
Most stock markets have done well so far in 2017 with
  • Hong Kong up by 27.1%
  • India up by 21.2%
  • France up by 14.16%
  • NASDAQ up by 19.4%
  • Dow Jones up by 11.1%
  • S&P500 up by 10.4%, but
  • TSX is down by 0.5%.
The thing is that the US has companies that we do not like Health Care which is up over 17% this year. Canada just does not have the range the US market has. The only strong area in Canada is gold.

There is trouble ahead as strong growth is wanted. In Canada, energy is still in trouble. Our housing market will slow. The NAFTA renegotiation creates uncertainty. Our higher interest rates will hit the Loonie. The overvaluation of the NY market will trigger a sell off.

He thinks that there will be more interest rates rises in Canada this year. He worries about the NY market being really over valued with a P/E Ratio of 24. There is a 10 to 15% correction coming and the TSX will follow.

He says that we should not overweight our portfolio with Canadian stock. We need to diversity internationally. He thinks we should take profits as appropriate and have some cash on hand. It might be good to invest in the EU as their stock markets are undervalues. We could also invest in the Far East. He would stay out of the US market for now.

He would not advise us to bail out of the market entirely. This is never a good idea. No one knows where the markets will go. He has a web site of

On my other blog I wrote yesterday about Smart REIT (TSX-SRU.UN, OTC-CWYUF)... learn more. Tomorrow, I will write about Just Energy Group Inc. (TSX-JE, NYSE-JE)... learn more on Friday, September 15, 2017 befor 8 am.

This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.

See my site for an index to these blog entries and for stocks followed. I have three blogs. The first talks only about specific stocks and is called Investment Talk. The second one contains information on mostly investing and is called Investing Economics Mostly. My last blog is for my book reviews and it is called Non-Fiction Mostly. Follow me on Twitter. I am on Instagram. Or you can just Google #walktoronto spbrunner8166 to see my pictures.

No comments:

Post a Comment