Greg Newman

There was a chase to year end and a bit of a Santa Claus rally. The crowd was really mispositioned for the widening chances of a soft landing, which are still about 85% according to Goldman Sachs. He's still constructive. 

There's been a big rally. Most watchers are waiting for this rally to thicken, widen out from the Magnificent 7. We've seen that in the last couple of days, with the NASDAQ struggling a little bit and the baton passing. That will continue. 

2024 is a year of tremendous uncertainty. US election coming, wars unfortunately, earnings expectations that may be a little high. People are more aggressive on the markets and looking for the Fed to lighten rates faster than will actually happen. 

Ton of opportunities in dividends, tech, industrials throughout this recovery. But he's also saying that fixed income is still very attractive, and you can enjoy it for the balanced part of your portfolio.

A base asset allocation is 70/30. In a strong bull market, where we don't see the market going down, you can get a swing where you get up to 90% equities. You could also swing the other way, going down to a 50% equity weighting.

In an environment like this, even though we're in a bull market and in the middle of a recovery, you have to have respect for the fact that bond yields are so high. In a registered account you can still get 5%+ on a GIC without any sort of headache. In non-registered accounts, you can buy coupon bonds that are very attractive from a tax perspective. 

There are still all these risks in the market and valuations aren't cheap anymore. From a risk/reward perspective, being on your asset allocation makes sense.

Industry strikes have come and gone. Acquisition looks a little dilutive to the multiple, but it adds scale to product portfolio and adds cross-selling. Eventually should be accretive to earnings. Leverage still looks fine. Cheap at 5.6x 2025 earnings, estimated growth at 12.5%. Good deal here. 

This name will follow the price of bitcoin. Fabulous run here. Not covered by a bunch of analysts, which is what you want for a young company. Pretty speculative. Management team looks talented. He needs to see an earnings path and a visible model.

He uses ETFs. Good one-stop way to get at the India 30, which has done well over the last couple of years. Over the next 30 years, India will be where China was. Very exciting area, investors should own.

He uses ETFs. Good one-stop way to get at the India 30, which has done well over the last couple of years. Over the next 30 years, India will be where China was. Very exciting area, investors should own.

14.5x PE, versus Hydro One at 17-18x. Great dividend, but payout ratio is high at 109%. Need to consider anticipated EPS growth rate, and this one's flat. Favourable acquisition. Decent. But ALA is the clear winner on PE and price to growth.

Need to consider anticipated EPS growth rate. In the utility space, ALA is the clear winner on PE and price to growth.

Has competition from GEI, PPL, and TA, which all look good here. 15x 2025 earnings. 66% payout ratio on a 7.6% dividend, pretty safe. Dividend growth, EPS growth.

Pre-earnings, highly speculative. However, he met with management, learned the story, and had a bit of a Shopify moment. Very skilled management. Good for the right type of client. Put it in a taxable account, where you can use any losses. Risk/reward has been working so far.

Good company, won't hurt you especially in a year like this. Why not buy something trading at 8.3x 2024 earnings, with a 5.5% dividend, 6% growth rate? 30% discount to NAV. 

Who knows what this year will bring? You want to construct your portfolio with things that aren't going to lose. Companies, like POW, where it's not a question of "if", but "when". Let them be the meat of your portfolio. 

Around the edges you can have the satellites like SHOP. If you have the risk tolerance and you see them, occasionally from time to time you can add in a small position like ABXX.

Coastal GasLink on schedule and on budget, set to deliver gas by end of fiscal 2023. This should be a de-risking event for them. Pretty cheap at 11x 2024. Asset sales should help de-risk. Really good dividend, good price, OK catalysts. Not a lot of growth. Will work at these levels, with interest rates coming down. His pecking order is ALA, ENB, and then TRP.

Let's say you have all your assets in a non-registered account. And you wanted a 70/30 asset allocation. For the 30%, you could use GICs which attract the highest tax rate. In Ontario, if you're at the top income level, that means you're giving 54% or thereabouts to the government.

What you can do is buy coupon bonds, which were issued when interest rates were lower. We're talking investment grade like banks, municipalities, governments -- attractive pieces of paper where you're going to get your money back. So the price moved down to, say, $90, and the maturity is 2 years from now. The coupon is only about 1.2-1.5%. The yield would be the same as a GIC. But the capital appreciation from $90 to $100 gives you about the same yield as a GIC, but most of the move, about 3/4 of the return, is capital appreciation which is taxed as a capital gain.

Because of that, it works out to a lot more money in your pocket, with the same amount of risk.

Largest gold producer in the world. Global. Expects synergies from latest acquisition. Balance sheet still in good shape. Well run. A go-to, if you like gold. But look at the chart -- owning gold over the last 20 years has been a tough game. 

If you want a miner, go with the copper miners, better risk/reward, part of the next ESG evolution/revolution of where the world is going.