Denis Taillefer from Caldwell Investment Management Ltd. says investors should brace for interest rates to stop falling – and maybe even rise again – once the Republicans are back in power in the U.S.
President-elect Donald Trump’s return to the White House next year may lead to lower costs for companies and consumers and boost economic growth, but inflation will be a going concern, says money manager Denis Taillefer.Caldwell Investment Management Ltd. in Toronto says investors should brace for interest rates to stop falling – and maybe even rise again – once the Republicans are back in power in the U.S.
Mr. Taillefer uses a combination of quantitative and fundamental analysis to pick stocks in each of his U.S. and Canadian equity portfolios. In the U.S., he focuses on high-quality, dividend-growing companies. In Canada, he looks for companies with “robust earnings growth prospects and trading at compelling valuations.”
The company has been repositioning itself as a pure-play engineering firm. We like that because pure-play engineering firms have a much lower risk profile and generate better margins and free cash flow. They also trade at a much higher multiple. The company is exiting its fixed-cost contracted business and divesting some of its non-core assets, which should help drive balance sheet improvements. That, in turn, should enable it to re-engage in merger and acquisition activity and restart growth.
The company has a few strong catalysts. The first one is strong demand, given the aging baby boomer population. We’re seeing steady improvements month over month in terms of occupancy rates. They’re still well below pre-pandemic levels, so there should be more potential for occupancy growth.
Globe Advisor Appwebview Brenda Bouw Advisor-Noregwall
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
AtkinsRealis Group reports third-quarter profit down from year agoThe engineering services firm says it earned net income attributable to shareholders of $103.7-million or 59 cents per diluted share for the quarter ended Sept. 30
Read more »
AtkinsRéalis Group reports third-quarter revenue up from year agoMONTREAL — AtkinsRéalis Group Inc. reported its third-quarter profit edged lower compared with a year ago when it benefited from a gain on the sale of its Scandinavian engineering services business.
Read more »
AtkinsRéalis Group reports third-quarter revenue up from year agoAtkinsRéalis Group Inc. reported its third-quarter profit edged lower compared with a year ago when it benefited from a gain on the sale of its Scandinavian engineering services business.
Read more »
AtkinsRéalis touts 'nuclear prowess' amid record backlog, reports Q3 revenue upAtkinsRéalis Group Inc. continued to tout its nuclear business as one of the keys to its growth strategy amid a record-high backlog last quarter. The engineering services firm says its services backlog stood at $16.84 billion as of Sept.
Read more »
Why won't Trudeau release classified names — and why won't Poilievre get a security clearance?Prime Minister Justin Trudeau is sworn in as a witness at the Foreign Interference Commission in Ottawa, in Ottawa, on Wednesday, Oct. 16, 2024.
Read more »
Why this money manager is buying Amazon and Dollarama and recently swapped a cybersecurity stockStan Wong of Scotia Wealth Management is an active money manager who invests based on macroeconomic, quantitative and technical analysis
Read more »