Canada markets open in 2 hours 3 minutes

  • S&P/TSX

    19,370.99
    +489.80 (+2.59%)
     

  • S&P 500

    3,790.93
    +112.50 (+3.06%)
     

  • DOW

    30,316.32
    +825.43 (+2.80%)
     

  • CAD/USD

    0.7359
    -0.0043 (-0.58%)
     

  • CRUDE OIL

    86.23
    -0.29 (-0.34%)
     

  • BTC-CAD

    27,323.77
    +63.29 (+0.23%)
     

  • CMC Crypto 200

    455.61
    +10.17 (+2.28%)
     

  • GOLD FUTURES

    1,720.40
    -10.10 (-0.58%)
     

  • RUSSELL 2000

    1,775.77
    +66.90 (+3.91%)
     

  • 10-Yr Bond

    3.6170
    0.0000 (0.00%)
     

  • NASDAQ futures

    11,553.50
    -87.25 (-0.75%)
     

  • VOLATILITY

    29.42
    -0.68 (-2.26%)
     

  • FTSE

    7,020.47
    -65.99 (-0.93%)
     

  • NIKKEI 225

    27,120.53
    +128.32 (+0.48%)
     

  • CAD/EUR

    0.7415
    +0.0005 (+0.07%)
     

Bitcoin thriving is ‘not in the interest of any government:’ Horizon Investments CIO

Yahoo Finance's Alexis Christoforous and Scott Ladner, Horizon Investments Chief Investment Officer, discuss bitcoin outlook and what stumulus could mean for the markets.

Video Transcript

ALEXIS CHRISTOFOROUS: I want to talk more about the markets now with Scott Ladner he is Chief Investment Officer at Horizon Investments. Scott, good to have you here. Before we delve into equities, we just like your take on what you are seeing in the cryptocurrency space, specifically with Bitcoin. Is it now a legitimate place for investors to turn to, perhaps even as a hedge?

SCOTT LADNER: You know, it's, I think it's a little bit unclear right now whether or not Bitcoin is going to be a good hedge either for equity markets or for something like inflation. It's just too volatile right now for it to be really considered a hedge for for much of anything. Bitcoin and the crypto is, broadly speaking, we don't really have a position in them at Horizon Investments. That's not really in our purview. But but we do think they may be challenged longer term. There's really not in the best interest of any government to let these things really thrive. So we think that we're going to have to get official government adoption before these things, before the crypto space, really gets, really catches hold. But, but in the meantime that does make for some wild rides.

ALEXIS CHRISTOFOROUS: Yeah, for sure. So you're thinking from, from what I'm hearing, you think regulation is in the offing. If and when it happens, would you give Bitcoin a second look?

SCOTT LADNER: Certainly. I mean, if it became something that that had a little bit longer price history, that it was easier to trade, if Futures Markets really, really took off. There are other instruments that you could use to get exposure to them and retail accounts or in some of our fund accounts. It's something that we would certainly look at. We're not could ignore it. It's just right now we think that space is a little bit too new and not really in line with what our investors need out of our products.

ALEXIS CHRISTOFOROUS: All right, let's get to equities now. And what's your outlook for the next three to six months and is this all going to be driven by stimulus and the virus, Scott?

SCOTT LADNER: You know, we think it is. I mean, you know, when you think about the last really nine months it has been a stimulus versus virus kind of market. And stimulus frankly has been kicking viruses butt. We think that's likely to kind of continue, especially given the dynamics of, the political dynamics around the new stimulus deal that's kind of, that's coming up. It's not really a matter of obviously if it's going to happen or even really when it's going to happen. We're just-- now we're arguing about whether it's going be 1.5 trillion or 1.9 trillion. That kind of stimulus, in the face of a waning virus, a virus that is going to be on the retreat over the next few months, is something that's really powering mortgage right now and likely going to be that at least the first half of this year.

ALEXIS CHRISTOFOROUS: Let's talk about what you like right now. I know small caps were having their moment in the sun. You actually called them in your note, you said they're the Lehman Brothers in the market today. That doesn't sound too good. What's your take on small caps? [LAUGHING]

SCOTT LADNER: Yeah. I guess I said in an affectionate way because, because small caps are they're very highly levered entities. So they're the most highly levered in the marketplace right now. And so when I was talking about the Lehman Brothers of the stock market, really what I was referring to is just the leverage that you can get in small caps. And so, obviously, in February and March, the reason why small caps got got hurt so badly, is because if you're a highly levered entity, the most dangerous thing you can have, firm characteristic wise, is leverage. If revenues go to zero, debt is a really dangerous thing on a balance sheet.

However, when you were going to get 7% to 9% nominal GDP growth in this country this year, you actually want to be geared towards, towards companies with leverage because they can drop more to the bottom line. Operating margins are getting better and with, with an economy that's going to be really booming in the first half of year based on stimulus, second half of the year based on the consumer. That is, you want as much exposure as you can get to high-growth types of companies.

ALEXIS CHRISTOFOROUS: And we're still in the midst of earnings season and earnings have been coming in pretty good. What's your outlook for for this quarter and are earnings going to be the next big catalyst for this market?

SCOTT LADNER: You know, I think we probably will be, Alexis. When we're thinking about earnings, we're mostly, we're most of the way through earnings season at least this quarter and the results have been nothing short of spectacular. Very, very strong top-line numbers. Very strong bottom line numbers. Like 80% of the S&P 500 companies that beat on the top line. That kind of thing, that, that kind of dynamic is what we're going to be expecting going forward. But what hasn't caught up yet is analysts' estimates. So analysts have been a little bit late to the game in terms of upgrading their year end forecast for the S&P 500 earnings. We think those thing-- we think those could top $180, $185 and that's going to provide some more room to the upside.

ALEXIS CHRISTOFOROUS: And what are you telling clients right now who may be very concerned about, about the virus, about the slow rollout of the vaccine? What are you what are you telling them?

SCOTT LADNER: I tell them to really stay the course right now. In terms of their finances, the consumers in the United States are in really outstanding shape. So we know that the headlines are going to be scary. They're probably not going to be good. The numbers are, in the United States virus-wise, aren't they're not particularly good although they're going the right direction. But over the next few months, with all the stimulus packages that are coming, that's going to really buoy markets. It's going to buoy the economy, broadly speaking. And so really we just have to get through these next few months until the weather gets warmer, until the vaccines take hold a little bit stronger, and not only are we going to have very, very strong markets but we're going to have a strong economy to go along with it.

ALEXIS CHRISTOFOROUS: All right. We can hope so. Scott Ladner, Horizon Investments Chief Investment Officer, good to have you with us today.

SCOTT LADNER: Thanks, Alexis.

ALEXIS CHRISTOFOROUS: And

Latest Stories

  • Australia's Telstra hit by data breach, two weeks after attack on Optus

    Australia's largest telecoms firm Telstra Corp Ltd said on Tuesday it had suffered what it called a small data breach, a disclosure that comes two weeks after its main rival Optus was left reeling by a massive cyberattack. Telstra, which has 18.8 million customer accounts equivalent to three-quarters of Australia's population, said an intrusion of a third-party organisation exposed some employee data dating back to 2017. According to local media, a Telstra internal staff email put the number of affected current and former employees at 30,000.

  • Marketmind: Not so fast

    U-turns are clearly in the air this week, with Elon Musk's volte face on buying Twitter on Tuesday following Britain's top rate tax cut reversal and this week's new-quarter relief bounce in stock markets. Of course many investors pray global central banks would join the British government and Musk in a similar rethink - but that's far less likely and reason enough for markets to sober up on Wednesday after the biggest two-day rally on Wall St since the pandemic hit in April 2020. British Prime Minister Liz Truss' speech to her annual party conference is also due and she's expected to insist the remainder of her fiscal plan remains intact.

  • Pathfinder Announces 17% YoY Increase in Occupancy in Q3

    Pathfinder Ventures Inc. (TSXV: RV) (OTCQB: RVRVF) (the "Company," "RV" or "Pathfinder.") is pleased to announce that it successfully closed its second Q3 season with a 71% occupancy from July 1st to September 30th, achieving a 17% increase from the prior year occupancy of 54% across all parks.

  • Why Did Cenovus (TSX:CVE) Drop 15.7% in September?

    Cenovus (TSX:CVE)(NYSE:CVE) stock fell 15% as oil prices weakened in September. Is this Canadian energy major a value buy? The post Why Did Cenovus (TSX:CVE) Drop 15.7% in September? appeared first on The Motley Fool Canada.

  • Ian deals blow to Florida's teetering insurance sector

    Daniel Kelly and his wife bought a 1977 doublewide mobile home in May for about $83,000 at Tropicana Sands, a community for people 55 and older in Fort Myers, Florida. But he ran into roadblocks when he tried to insure it. Managers at Tropicana Sands told him he likely wouldn’t be able to find a carrier who would offer a policy because the home was too old. He said he checked with a Florida-based insurance agent who searched and couldn’t find anything. “I can insure a 1940s car, why can’t I insu

  • Experts: Europe faces 'unprecedented risk' of a gas shortage

    Europe faces “unprecedented risks” to its natural gas supplies this winter after Russia cut off most pipeline shipments, the International Energy Agency said Monday, warning that European nations could wind up competing with Asia for already scarce and expensive liquid gas that comes by ship. The Paris-based IEA said in its quarterly gas report that the European Union's 27 countries would need to reduce natural gas use by 13% over the winter in case of a complete Russian cutoff amid the war in U

  • O3 Mining Announces Normal Course Issuer Bid

    O3 Mining Inc. (TSXV: OIII) (OTCQX: OIIIF) ("O3 Mining" or the "Corporation") is pleased to announce that the TSX Venture Exchange (the "Exchange") has accepted the Corporation's notice to implement a normal course issuer bid ("NCIB") to purchase, for cancellation, up to 4,921,389 of its common shares (the "Shares"), representing approximately 10% of the Corporation's "public float".

  • It's a scary time for investors, but they need to find the courage to face their fears

    Martin Pelletier: Those who face their fears when things are at their scariest always end up with the most candy

  • China likely to boost oil products exports into early 2023, support economy

    (Reuters) -Chinese refiners are likely to boost refined oil products exports in the last two months of 2022 and into early 2023 after receiving the biggest allocation from Beijing this year, trade sources and analysts said on Monday. The increase in Chinese exports is likely to help stabilise global oil markets and partly replace supplies from Russia which will be hit by European Union embargoes in coming months. "A ramp-up in product exports from China will support energy-starved oil markets considerably as there are concerns about an impending EU embargo on Russian supplies," said Sugandha Sachdeva, vice president of commodity and currency research at Religare Broking.

  • Key suspect in murder-for-hire case pleads not guilty

    BURLINGTON, Vt. (AP) — A Los Angeles biotech investor pleaded not guilty Tuesday in a transcontinental murder-for-hire conspiracy that led to the 2018 abduction and killing of a Vermont man. Serhat Gumrukcu, a 39-year-old Turkish citizen, appeared in U.S. District Court in Burlington, where he entered the plea to a charge of interstate murder for hire during a brief hearing before Judge Geoffrey Crawford. If convicted, he could go to prison for life. Gregory Davis, 49, was abducted from his home

  • Veterinary Purchasing Company Limited Announces New Chief Executive Officer Patrick Hinnegan CPA, CMA

    The Board of Directors of Veterinary Purchasing Company Limited (VPCL) is pleased to announce the appointment of Mr. Patrick Hinnegan as incoming Chief Executive Officer (CEO), effective November 1st, 2022. Pat succeeds the retiring CEO, Mr. Rick Culbert who has led the company since 2014. Culbert and Hinnegan worked very closely over the past 8 years, a span during which the company saw significant expansion and a greater than doubling of annual revenue.

  • 2 TSX Stocks With Safety in a Recession

    Fortis (TSX:FTS)(NYSE:FTS) and Restaurant Brands International (TSX:QSR)(NYSE:QSR) can help you make big money in a down year. The post 2 TSX Stocks With Safety in a Recession appeared first on The Motley Fool Canada.

  • Aspire Academy and FIFA Kick Off the 8th Global Summit with high profile FIFA guests David Beckham and Wenger

    Aspire Academy kicked off its 8th Global Summit in Doha, this time in collaboration with FIFA with a line-up of high-profile guests including football legends David Beckham and Arsène Wenger. The two-day Global Summit at Aspire Academy's Football Performance Center brings together delegates to share their knowledge, experience and research in football performance and science.

  • McDonald's defeats Black franchisees' $1 billion bias lawsuit, for now

    (Reuters) -McDonald's Corp has temporarily beaten back a lawsuit by 52 Black former franchise owners who claim the fast-food chain set them up for failure by steering them toward crime-ridden, low-income neighborhoods. A federal judge in Chicago dismissed the 2020 lawsuit in a written order last week, but gave the plaintiffs until Oct. 21 to file an amended complaint. The plaintiffs claim McDonald's has not offered profitable restaurant locations and growth opportunities to Black franchisees that were on the same terms as white franchisees, despite its public commitment to diversity and Black entrepreneurship.

  • Cheetos® proudly unveils a statue to commemorate Cheetle, the official term for the brand's orange dust

    Cheetos lovers are some of the most passionate snackers in the game, and they know that you can't enjoy the cheesy snack without getting your fingertips a little —okay, a lot—messy. That's why, today, the Cheetos brand is proud to unveil the Cheetle Hand Statue in Cheadle, Alberta—a monumental celebration of the iconic orange dust, Cheetle, in a hamlet that sounds just like it.

  • Exxon refinery lockout 'unlawful,' back pay sought by U.S. Labor Board

    The U.S. National Labor Relations Board (NLRB) said a 10-month lockout of workers at an Exxon Mobil Corp refinery in Texas was an "unlawful" effort to remove the United Steelworkers union (USW) representing the workers, according to a complaint issued on Monday. The NLRB asked an administrative law judge to issue back pay, among other remedies, to the more than 600 workers locked out of their jobs at Exxon's Beaumont, Texas, refinery and lube oil plant between May 2021 and March 2022. Union refinery workers with at least four years experience nationally make over $41 per hour on average.

  • EBARA Corporation Acquires Hayward Gordon

    We are pleased to announce that EBARA Corporation Japan (EBARA) has acquired 100% equity of Hayward Gordon L.P. (Hayward Gordon).

  • Depositors storm 4 Lebanese banks, demanding their own money

    BEIRUT (AP) — Lebanese depositors, including a retired police officer, stormed at least four banks in the cash-strapped country Tuesday after banks ended a weeklong closure and partially reopened. As the tiny Mediterranean nation's crippling economic crisis continues to worsen, a growing number of Lebanese depositors have opted to break into banks and forcefully withdraw their trapped savings. Lebanon's cash-strapped banks have imposed informal limits on cash withdrawals. The break-ins reflect g

  • Oil jumps more than 3% ahead of OPEC+ meeting on supply cuts

    NEW YORK (Reuters) -Oil rose by nearly $3 a barrel on Tuesday on expectations of a large cut in crude output from the OPEC+ producer group and as a weaker U.S. dollar made oil purchases less expensive. Top oil traders also said at the Argus European Crude Conference in Geneva on Tuesday that economic headwinds have not yet caused significant erosion of global oil demand.

  • New Zealand's central bank lifts rates to 7-year high in hawkish rush

    SYDNEY (Reuters) -New Zealand's central bank on Wednesday lifted interest rates to a seven-year high and promised more pain to come as it struggles to cool red-hot inflation in an over-stretched economy. The Reserve Bank of New Zealand's (RBNZ) policy committee raised its official cash rate by 50 basis points to 3.5%, the fifth such outsized move and the eighth hike in 12 months. The committee even debated whether to hike by 75 basis points given intense price pressures in the economy, but decided on a half-point move.