A myopic focus on large-cap technology stocks combined with a broader reacceleration of S&P 500 profits is creating a once-in-a-generation investment opportunity, according to a research report from New York-based Richard Bernstein Advisors LLC (RBA).
The research team at RBA is led by founder Richard Bernstein, former chief U.S. quantitative strategist at Merrill Lynch. They are extremely bullish on most of the U.S. market outside of the Magnificent 7 group of technology giants – Alphabet, Nvidia Corp., Tesla Inc. , Microsoft, Apple, Amazon and Meta – that have outperformed since the pandemic began.
The strategists believe that forecasts for a soft landing in the U.S. economy are too pessimistic. They believe the economy, and profits by extension, are set to ramp higher. They note that in July, economists predicted no growth for the U.S. economy in the third quarter. Estimates climbed quickly to 3.0 per cent but even this wasn’t enough – the preliminary GDP estimate recently came in at 4.9 per cent. Nominal GDP growth – which excludes the impact of inflation – is near 8.5 per cent, which should help corporate profits.
To further support their case, RBA points to the OECD Leading Economic Indicators for the U.S., which has historically been correlated to the profit cycle. The leading indicators have troughed and began a move higher, implying a similar move for broader earnings growth.
RBA compares the relative valuation levels of the Magnificent 7 stocks and the equal weighted S&P 500 to a “misbalanced seesaw.” The former’s PE ratio is above 40 while the equal weighted benchmark, which is essentially an average of everything else, is about 15 times. The strategists expect that the seesaw, which currently favours the Magnificent 7, is about to swing the other way.
RBA’s projected scenario is dependent on a strengthening in U.S. economic growth causing an increase in the number of companies representing strong earnings growth, enough of them to draw investor assets away from the Magnificent 7. The best way for investors to gauge the success of failure of the forecast is to watch U.S. economic growth closely.
Investors who agree with Bernstein’s views may find an exchange-traded fund like the Invesco S&P 500 Equal Weight ETF (RSP-A) quite attractive right now.
— Scott Barlow, Globe and Mail market strategist
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Stocks to ponder
Air Canada (AC-T) The airline is generating strong profit growth amid surging demand from travel-hungry customers. But the stock is in a steep nosedive, suggesting that investors are growing increasingly worried about the future, reports David Berman.
The Rundown
Is the cryptoverse as good as gold? Spot bitcoin ETFs aim to whip up U.S. demand
Bitcoin, the original crypto rebel, is racing into the heart of the financial establishment with an exchange-traded fund that tracks its price. But will it strike gold? Here is what some strategists and fund managers are saying.
Bond fund managers head for third year of losses for first time in decades
Many of the world’s biggest bond funds are facing their third straight year of losses for the first time in roughly 40 years, as a relentless U.S. economy sends bond yields to their highest levels in more than a decade. Yet far from being put off, investors are loading up on bonds again in 2023 after bailing out of the market last year, drawn in by the same run-up in yields that has caused so much pain, as Reuters reports.
Micro stocks shine in China’s flagging share market
China’s annus horribilis has seen its stock markets fall, funds run up losses and foreign investors run for the exit. But areas of the market dominated by small stocks and frequented by the country’s retail investors have done surprisingly well, as Reuters reports.
Bears bet big that nickel can close the product gap
The LME three-month nickel price has been on the slide for most of the year, sucking in momentum-tracking technical funds. Currently trading around US$18,000 per tonne, nickel is down by 42% on the start of January and challenging chart support levels dating back to late 2021. The technical weakness is a mirror on an overwhelmingly bearish fundamental picture. The global nickel market is entering a period of massive oversupply thanks to an Indonesian production boom. Everything is pointing to still lower prices. However, this being devilish nickel, things are not that simple, says long-time metals journalist Andy Home.
Will natural gas prices keep rising?
Based on expectations of higher demand, U.S. natural gas prices have been on an upward trend since March. Will it last? Brian Donovan takes stock of the situation.
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What’s up in the days ahead
Ian McGugan takes a look at the growing divergence between Canadian and U.S. households – and how it points to trouble ahead for consumer stocks in this country.
TORONTO – Canada’s main stock index was up more than 250 points in late-morning trading, led by strength in the base metal and technology sectors, while U.S. stock markets also charged higher.
The S&P/TSX composite index was up 254.62 points at 23,847.22.
In New York, the Dow Jones industrial average was up 432.77 points at 41,935.87. The S&P 500 index was up 96.38 points at 5,714.64, while the Nasdaq composite was up 486.12 points at 18,059.42.
The Canadian dollar traded for 73.68 cents US compared with 73.58 cents US on Thursday.
The November crude oil contract was up 89 cents at US$70.77 per barrel and the October natural gas contract was down a penny at US2.27 per mmBTU.
The December gold contract was up US$9.40 at US$2,608.00 an ounce and the December copper contract was up four cents at US$4.33 a pound.
This report by The Canadian Press was first published Sept. 19, 2024.
Losing a loved one is never easy, and the legal steps that follow can add even more stress to an already difficult time.
For years, families in Vancouver (and Canada in general) have struggled with a complex probate process—filled with paperwork and legal challenges.
Thankfully, recent changes to Canada’s probate laws aim to make this process simpler and easier to navigate.
Let’s unearth how these updates can simplify the process for you and your family.
What is probate?
Probate might sound complicated, but it’s simply the legal process of settling someone’s estate after death.
Here’s how it works.
Validating the will. The court checks if the will is legal and valid.
Appointing an executor. If named in the will, the executor manages the estate. If not, the court appoints someone.
Settling debts and taxes. The executor (and you) pays debts and taxes before anything can be given.
Distributing the estate. Once everything is settled, the executor distributes the remaining assets according to the will or legal rules.
Probate ensures everything is done by the book, giving you peace of mind during a difficult time.
Recent Changes in Canadian Probate Laws
Several updates to probate law in the country are making the process smoother for you and your family.
Here’s a closer look at the fundamental changes that are making a real difference.
1) Virtual witnessing of wills
Now permanent in many provinces, including British Columbia, wills can be signed and witnessed remotely through video calls.
Such a change makes estate planning more accessible, especially for those in remote areas or with limited mobility.
2) Simplified process for small estates
Smaller estates, like those under 25,000 CAD in BC, now have a faster, simplified probate process.
Fewer forms and legal steps mean less hassle for families handling modest estates.
3) Substantial compliance for wills
Courts can now approve wills with minor errors if they reflect the person’s true intentions.
This update prevents unnecessary legal challenges and ensures the deceased’s wishes are respected.
These changes help make probate less stressful and more efficient for you and other families across Canada.
The Probate Process and You: The Role of a Probate Lawyer
(Image: Freepik.com)
Working with a probate lawyer in Vancouver can significantly simplify the probate process, especially given the city’s complex legal landscape.
Here’s how they can help.
Navigating the legal process
Probate lawyers ensure all legal steps are followed, preventing costly mistakes and ensuring the estate is managed properly.
Handling paperwork and deadlines
They manage all the paperwork and court deadlines, taking the burden off of you during this difficult time.
Resolving disputes
If conflicts arise, probate lawyers resolve them, avoiding legal battles.
Providing you peace of mind
With a probate lawyer’s expertise, you can trust that the estate is being handled efficiently and according to the law.
With a skilled probate lawyer, you can ensure the entire process is smooth and stress-free.
Why These Changes Matter
The updates to probate law make a big difference for Canadian families. Here’s why.
Less stress for you. Simplified processes mean you can focus on grieving, not paperwork.
Faster estate settlements. Estates are settled more quickly, so beneficiaries don’t face long delays.
Fewer disputes. Courts can now honor will with minor errors, reducing family conflicts.
Accessible for everyone. Virtual witnessing and easier rules for small estates make probate more accessible for everyone, no matter where you live.
With these changes, probate becomes smoother and more manageable for you and your family.
How to Prepare for the Probate Process
Even with the recent changes, being prepared makes probate smoother. Here are a few steps to help you prepare.
Create a will. Ensure a valid will is in place to avoid complications.
Choose an executor. Pick someone responsible for managing the estate and discuss their role with them.
Organize documents. Keep key financial and legal documents in one place for easy access.
Talk to your family. Have open conversations with your family to prevent future misunderstandings.
Get legal advice. Consult with a probate lawyer to ensure everything is legally sound and up-to-date.
These simple steps make the probate process easier for everyone involved.
Wrapping Up: Making Probate Easier in Vancouver
Recent updates in probate law are simplifying the process for families, from virtual witnessing to easier estate rules. These reforms are designed to ease the burden, helping you focus on what matters—grieving and respecting your dead loved ones’ final wishes.
Despite these changes, it’s best to consult a probate lawyer to ensure you can manage everything properly. Remember, they’re here to help you during this difficult time.
TORONTO – Canada’s main stock index was higher in late-morning trading, helped by strength in energy stocks, while U.S. stock markets also moved up.
The S&P/TSX composite index was up 34.91 points at 23,736.98.
In New York, the Dow Jones industrial average was up 178.05 points at 41,800.13. The S&P 500 index was up 28.38 points at 5,661.47, while the Nasdaq composite was up 133.17 points at 17,725.30.
The Canadian dollar traded for 73.56 cents US compared with 73.57 cents US on Monday.
The November crude oil contract was up 68 cents at US$69.70 per barrel and the October natural gas contract was up three cents at US$2.40 per mmBTU.
The December gold contract was down US$7.80 at US$2,601.10 an ounce and the December copper contract was up a penny at US$4.28 a pound.
This report by The Canadian Press was first published Sept. 17, 2024.
