Money: Don’t Panic Over Tumbling Stocks in the TSX Index! - PressFrom - Canada
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MoneyDon’t Panic Over Tumbling Stocks in the TSX Index!

11:55  07 december  2018
11:55  07 december  2018 Source:   fool.com

Toronto stocks down, U.S. markets also fall

Toronto stocks down, U.S. markets also fall Toronto stocks down, U.S. markets also fall

Stock charts on Bloomberg also don ’ t show the big decline in Loblaw’s share price, while on Yahoo Finance – depending on the type of chart you create – some In that case, the loss would be denied for tax purposes. Nor could you sell an ETF that invests in the S&P/ TSX composite index – such as.

It’s been a relatively tough year for investors. After becoming used to the highs of 2016 and 2017, investors watched the S&P/ TSX Composite Index drop about 7% since the beginning of 2018. At a time like this, investors turn to Canada’s Big Five banks for stability. But which of the five holds the most

Don’t Panic Over Tumbling Stocks in the TSX Index!© Provided by Fool Bank sign on traditional europe building facade

It’s been a relatively tough year for investors. After becoming used to the highs of 2016 and 2017, investors watched the S&P/TSX Composite Index drop about 7% since the beginning of 2018.

At a time like this, investors turn to Canada’s Big Five banks for stability. But which of the five holds the most value in this increasingly volatile market? While it may not be the biggest bank in Canada, it’s my humble opinion that the Canadian Imperial Bank of Commerce (TSX:CM) (NYSE:CM) provides the most value.

High Growth at a Cheap Price

I was one of millions of people scouring stores and websites to find the best deals on Black Friday, and it got me thinking. People are so happy to see sales in stores, but the complete opposite holds true for stocks. We celebrate highs and fear lows, when really we should see them as “on sale.”

North American stocks plunge in early trading

North American stocks plunge in early trading North American stocks plunge in early trading

Consider adding stocks like Toronto -Dominion Bank ( TSX :TD)(NYSE:TD) to beat the TSX . For those who are risk averse, it can be unnerving. Unfortunately, it’s when emotions take over that investors make mistakes. Quad Group’s chief strategist Peter Borish said it best in a recent interview

2018 has been a rough year for stocks , and marijuana stocks have been among those hit the hardest. After an unprecedented rally in late summer, cannabis stocks have retreated to the point where many of them have erased their gains for the year. Don ’ t Panic Over Tumbling Stocks in the TSX Index !

This is the case for CIBC. The bank announced its quarterly earnings on 28 November and it didn’t meet analyst expectations. Earnings per share rose to $3.00 with analysts forecasting $3.04. This number has swamped headlines, yet it’s the first time in 15 quarterly cycles that the bank hasn’t exceeded analyst expectations!

So let’s turn away from that number for a second and note that it was still a strong quarter for CIBC. The bank reported net income of $1.36 billion, up from $1.26 billion a year ago. Its one-year past earnings growth of 14.5% beat the Canadian banking industry’s average of 10%, and CIBC’s own five-year average of 10.3%. Many analysts attribute this increase to the bank finally earning outside of Canada.

America the Beautiful

Honestly, CIBC could not have had this strong year without expanding into the United States. After acquiring PrviateBancorp last year, CIBC’s U.S. region almost doubled from 9% to 16% this year, making their goal of 17% by 2020 look practically certain. This expansion has already delivered earnings of $131 million, up from $107 million a year ago.

Asian shares edge higher with Fed meeting in focus

Asian shares edge higher with Fed meeting in focus SINGAPORE - Asian markets rose Monday on hopes that the Federal Reserve would re-evaluate its hawkish stance at a meeting later this week, following signs of slower global growth. KEEPING SCORE: Japan's Nikkei 225 index added 0.8 per cent to 21,536.85 and the Kospi in South Korea gained 0.3 per cent to 2,074.51. Hong Kong's Hang Seng was up 0.3 per cent at 26,178.87. The Shanghai Composite index rose 0.1 per cent to 2,597.22. Australia's S&P ASX 200 was 0.6 per cent higher at 5,635.50. Shares were higher in Taiwan and Singapore but fell in Indonesia.

While the stock has been stagnant in 2018, operations remain stable. In the most recent quarter, funds from operations (FFO) — a key metric in the real estate industry — increased 2.3% to .4 million. Don ’ t Panic Over Tumbling Stocks in the TSX Index ! Is Canopy Growth Corp Stock a Safe Buy?

Don ’ t Panic Over Tumbling Stocks in the TSX Index ! Is Canopy Growth Corp Stock a Safe Buy? Even With All The Risk, Aphria Presents Tremendous Upside. Backlash over Turkish restaurant's anti-Brexit message | The Cube. Here's what you need to know about SNC-Lavalin, the company at

Investors can be thankful CIBC is finally able to take advantage of a strong American economy. The bank is likely to continue this expansion, but it won’t be cheap. So that’s why I have yet another recommendation.

Buy it and Forget it

CIBC warned investors in its quarterly earnings report that while it will be enhancing its U.S. business with some major deals, it’ll be expensive. This means the bank’s return on equity will likely go down. The bank also stated that global economic uncertainty and trade tensions could bring earnings growth to the bottom of their target 5-10% range next year. This has brought shares near their 52-week low at the time of writing this article.

But investors should see this as an opportunity to buy this stock while it’s relatively cheap. With analysts valuing the stock at between $130-$150, that makes the current price of about $111.50 look like a Black Friday sale.

Should Marcel move all his RRIF investments to a low-risk balanced fund?

Should Marcel move all his RRIF investments to a low-risk balanced fund? He wants to lock in equity gains and reduce volatility

Aphria Inc's ( TSX :APHA)(NYSE:APHA) stock price has plunged to 52-week lows. Is it time to buy this high-profile marijuana stock ? Don ’ t Panic Over Tumbling Stocks in the TSX Index ! Is Canopy Growth Corp Stock a Safe Buy?

Aphria is one of the few marijuana stocks that has been cranking out positive earnings consistently. However, this is mostly thanks to gains on its investment portfolio, which consists of both cannabis stocks and TSX blue chips. Don ’ t Panic Over Tumbling Stocks in the TSX Index !

The Bottom Line

Now you could wait and see if this stock goes down even further, but one thing is for sure: it won’t stay there long. While you’re refreshing your stock screener, you might miss the chance to buy this high-value stock at such a discount before it heads back into the high teens.

And while you may not see earnings immediately, you will see a decent dividend of 4.79% while you wait. So my advice? Stop trying to figure out the world’s economic problems and buy this blue-chip while it’s down.

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Amy Legate-Wolfe does not have a position in any of the stocks mentioned in this article.

Canadian Stocks Post Worst Week Since 2015.
Canadian stocks ended their worst week since August 2015 with another volatile day that started positive and ended with a significant decline. The S&P/TSX Composite Index fell 1.5 percent to 13,935.67 Friday, bringing its weekly loss to 4.5 percent. Higher-than-average volume as a result of expiring futures and options exacerbated the selling on the last full trading day before Christmas, as did the growing likelihood of a U.S. government shutdown. All sectors closed in the red, with technology and health-care stocks leading the decline. Cannabis company Aphria Inc. fell 7.4 percent and BlackBerry Ltd. lost 8.

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