Ultimate Irony! (TWTW – Aug 9-13, 2021)

Ultimate Irony!

Having the Biden Administration pretty much beg the Saudis to increase Oil production is … the Ultimate Irony, AFTER having upon taking office, killed the Keystone Pipeline that would have ensured additional supply from a trusted, reliable, and ethical producer: YOUR NEIGHBOUR TO THE NORTH!!!

One could be forgiven for being tempted to say: “Genius”!

Interestingly, even as it speaks to tightness in the oil market, translating into rising prices at the pump … it is NOT, at the moment, bringing us that sector re-rating that Oil and Gas investors are hoping for … Will there be a delayed reaction on that front, and in between now and then, will significant share buyback and dividend payments be the “thing”, as far as getting market participants to reassess? Stay tuned, as they say.  As far as a strong (somewhat frustrated I think) voice in the space, here is NinePoint‘s PM Eric Nuttall’s latest this week in the Financial Post => Click HERE!

Global X on what “Thematic” is => Read more: Click HERE!

Note this is labelled “Partner content” at Investment Executive, which means this is how Global X is seeking to reach an audience here. In Canada, we obviously have many ETF solutions from providers who are listing them on Canadian Exchanges, and have strong presences across the country. Global X, obviously is a meaningful player in the realm of Thematic, with a significant line-up of ETFs listed primarily in the US.

Talking of which … a pretty good discussion on the topic of Thematic, with Global X’s Head of Research Jay Jacobs speaking to Mark Noble => Click HERE!

Last month’s top and bottom 10 performers across BMO ETFs Line-up:

Year-to-date (July 31, 2021) top and bottom 10 performers across BMO ETFs Line-up:

Noteworthy:

  • China and EM (both Low Vol and Market Cap weighted) worse performers in July (and China, by far the worst performing market YTD – Thanks CCP!)
  • Strength in Canadian REIT space in July = benefitting from drop in yields? + combining that with sense that office life and by extension real estate in general, as far as shopping etc will all return to some form of “normal”?
  • US exposure: Quality and low vol: strength in July
  • Canadian Banks vs US Banks: RS of CDN Banks in past 3 months … will US Banks need rising 10 years yields again before resuming outperformance?
  • Junior and EW Global Gold: will traditionally strong period (into mid-late September) prove worthwhile this year?
  • to partake in bonds rebound in past 3 months, Long duration was the ticket … is that trade over?

Coming up:

“Thematic” ETFs Investing Summit 2021 (Aug 24-26, 2021)

Register HERE!

 

Sector performance – July 31, 2021-August 13, 2021:

Latest News:

  • Elections called in Canada for September 20, 2021 – how will that affect CAD and TSX, if at all?
  • International news – really sad to read what is happening in Afganistan … After all the efforts made to help establish democracy there 🙁
  • Coming up: Jackson Hole FED meeting: Aug 26-28, 2021

Other:

Hydrogen – I recall that back around 2000, Canada’s Ballard Power was to be a huge deal based on the potential of their fuel cell technology. Now … apparently, this potential as far as Hydrogen, should be realized within this decade – possibly? Click HERE to read a recent Merrill research report on the potential for Hydrogen to play a major role in solving for our environmental crisis. (March 17, 2000: Ballard: CAD 143.50. Latest: CAD 18.91.