Barometer Capital.

Latest Insights by Barometer

Cyclicals still cheap heading into a reaccelerating economic cycle.

David Burrows on BNN Bloomberg The Open (28 NOV 19) David Burrows, president and chief investment strategist at Barometer Capital Management, says investors should expect a new leg higher in the bull market for stocks. He says the economic foundation is in place to power prices higher and he recommends investors avoid fixed income and

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U.S. Earnings Growth Q4

Why U.S. Corporate Earnings Growth is Expected to be Lower for Q4 2018

With the Q4 2018 U.S. earnings reporting season getting underway, it’s important to keep a couple of things in mind as companies begin to report. Growth rates are expected to be lower in Q4 2018, but this makes sense given that the 20+ per cent results that we saw earlier in 2018 were largely driven

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Movie Cameras

We’ve seen this movie before, but how will it end?

With all of the hype, hyperbole and rhetoric around claims of fake news leading up to the November mid-term elections in the U.S., one might think that all of this previously untrodden ground may be having an adverse affect on the markets. Or at the very least, a previously unseen affect. But is this really

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US Jobless Rate

A record number of unfilled jobs, coupled with a shrinking jobless rate equals…

Earlier this week, the U.S. Labor Department released data showing that the U.S. had more than seven million unfilled jobs at the end of August. This is the biggest number ever recorded since tracking began in 2000. In fact, available jobs outnumbered unemployed workers (those actively seeking work) by nearly 100,000. A startling statistic. We

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High tech research and development.

It takes money to make money

Does it matter if a company reinvests in its business? One of the many factors to consider when investing in a business is whether or not a business is investing in itself. Is there a correlation between the performance of a business and how it performs in the market? To some degree, the answer is

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Where to from here?

It has been a volatile year; so where do we go from here?

So far, 2018 has seen more than its fair share of market ups and downs. So with all of this volatility, where do we go from here? While history does not always repeat itself, there have been some striking similarities over the last four corrections cycles that are worth considering. As far as corrective phases

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Is there a Recession on the Horizon?

Are there signs of a recession on the horizon?

If you’re wondering just how healthy the current business cycle may (or may not) be, one way to gauge this is by looking at several key economic recession indicators. When looking at the key recession indicators in the recession dashboard (which compares the current outlook to past periods of recession), the present outlook is very

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U.S. equities are outperforming on a global scale

U.S. equities are outperforming on a global scale… but can they continue?

Despite all of the talk about trade issues and other political topics, U.S. equities continue to lead the way. When compared to emerging markets and the EAFE markets of Europe, Australasia and the Far East, U.S. markets are significantly outperforming. But can this trend continue? While no one can predict the future, there are some

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Chains Strength

With new market highs across the board, where is the strength coming from?

Markets have been on an upward swing this year, making new highs on a regular basis. Contrary to what you may think, however, it’s not the largest stocks that are driving returns. While the so-called FAANG stocks (Facebook, Amazon, Apple, Netflix and Google) have been performing well, it is actually the mid-cap stocks in quintiles

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Red Diamonds

Scarcity of Supply means Increased Demand

The Number of Companies Listed on U.S. Exchanges has Dropped Significantly The number of companies listed on U.S. exchanges has dropped dramatically since 1996: from a high of 8,823 to the current number of 5,296 — a drop of 40 per cent. With 40 per cent fewer public companies available on the markets, there is

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