Optimism #61 - March 24, 2023

Dear clients and friends, happy Friday. 

It’s my 24th wedding anniversary and 2 days after my kid’s 21st birthday. Am I really this old?

Despite the endless negativity, there are many signs of brightness and a little humour.

Power Corp increased their dividend again…. +6.1%.
And Manulife +8.7%, CCL Industries +10.4%, Thompson Reuters +10.1%, Brookfield (BIP.UN) +5.6%, and Franco Nevada +6.3%.

Tom Connolly said recently that “A long history of increasing dividends does not guarantee continuation, but it certainly increases the probability.”

And John Maynard Keynes said his utilities in the 1930s “saved his portfolio.”

“Insiders may sell their shares for any number of reasons but they buy them for only one; they think the price will rise.”

Insiders buying at New Found Gold, BCE, Enerplus, Brookfield, Tourmaline Oil, Interfor Corp, Sprott, Agnico Eagle, Neighborly Pharmacy, Enbridge, and Bankd of Nova Scotia to name a few.
Many are spending more than a million on their own company shares at Calfrac Industries (energy), H&R Reit, Telus CEO (4.0 Million), and Element Fleet Management. George Cope, the former president, and CEO of BCE, now a board member at BMO, bought more than 2 million worth of BMO shares. 

Andrew Lokenauth says the stock market crashed 34% in 2020, 57% in 2008, 49% in 2000, 29% in 1987, and 48% in 1974.
However, since 1926 it has gone up about 10% per year on average since 1926, or 1,330,000% over 96 years.
Don’t let short-term fear control long-term decisions.

David Rosenberg, the famous Canadian Analyst who is never optimistic, is now. (word copy attached as well)
David Rosenberg: Why the long-term outlook for Canadian stocks is looking rosy (short-term, not so much) - The Globe and Mail

The Globe and Mail made me laugh recently saying that “Unfortunately, speculators rarely believe they are speculating …”.

Quebec, which is planning to phase out the sale of new fossil fuel cars in 2030 was rejected by Volkswagen for a new electric car plant because of its inability to provide sufficient electricity. You can’t make this stuff up. 

Everyone is for ‘eating the rich’ until you tell them that being one of the top 1% of earners in the world means having income over $34,000 per year.

Have a tremendous weekend. Spring is here.
Derek Moran