“We have been bearish on the Canadian dollar for some time, and although the loonie has remained more resilient than-expected, we find it hard to have a constructive view. At best, it remains stuck in its 2-year range, but we continue to see more downside risk than upside risk going forward. Consider the following points: Fed vs BoC: Heading in the same direction, but at very different speed. Is the interest rate differential already priced-in the loonie? Maybe partially, but probably not fully.
“Our Q3 earnings season kicks off this week and runs through November 15. In advance, we’ve revisited the cap rate assumptions underpinning our NAV work and re-calibrated target prices. Broadly speaking, target prices are up for our retail and industrial names; we’ve trimmed targets for most of multifamily REITs under coverage.
“After a three-day event at the Idaho National Lab, Ross Fowler thinks the development of new nuclear technologies is underappreciated. According to U.S. Department of Energy estimates, U.S. nuclear capacity must triple to 300GW by 2050. Supportive federal legislation and investment commitments in Small Modular Nuclear Reactors are signs of progress.