Consensus opinion is bearish on small-capitalization stocks. But investors who resist the group-think will find a fertile hunting ground for some of the best money-making opportunities in today’s market.
Although weakness in the Canadian dollar has weighed on total returns, the Lifelong Income Portfolio’s Toronto-listed holdings have eked out decent returns in the first half of the year. First-quarter results were solid, dividends appear sustainable and our investment theses remain intact for the long term.
Our favorite refiner stands to benefit from the growing glut of crude oil on the Gulf Coast, growing international demand for diesel and superior economics to competitors in Asia and Europe. Equally important, this stock complements the Wealth Builders Portfolio’s existing energy holdings.
The best investment decisions don’t involve shortcuts. Therein lies the danger of ultra-popular exchange-traded funds and exchange-traded notes (ETN). The promise of diversified, one-stop exposure to a sector, industry or strategy can obscure the disadvantages associated with these investment vehicles.
All our holdings in the Wealth Builders Portfolio have reported quarterly results, with most living up to or exceeding the market's expectations. We review the final five sets of earnings and revisit our investment theses for these names.
Our Lifelong Income Portfolio holdings continue to post strong numbers this earnings season. We review the qualitative and quantitative metric we use to evaluate the health of our positions and review each company's future prospects in light of their quarterly results.
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