March 13, 2017

On Monday, the S&P 500 was about unchanged and Toronto was up 0.2%. CRH Medical was up 3.3% and Linamar was up 2.1%.

The next update will be for Stantec. It looks expensive on a trailing earnings basis. But it appears to be forecasting earnings growth for 2017 in the range of 25% or more. It’s been a fantastic investment for years and the update rates it Buy at $35.

TD Bank responded to the CBC story. I would say their response could be classified as mostly a denial that anything is wrong other than a very few isolated incidences. We shall see.

The big excitement this week will be the FED rate announcement. Even though it is said to be a virtually certain that the FED will raise on Wednesday there will still likely be some market reaction. Higher interest rates are like stronger gravity to stock prices and all else equal it should be negative for stock prices. However, earnings growth is a buoyancy force for stock prices and so we shall see which force is stronger.

Meanwhile it is starting to become apparent, I think, that Trump will not have an easy time getting full support even from Republicans for everything he wants to do. With that and with the investigations going on there is always a chance that markets will stop viewing his Presidency quite so kindly