Bullish investors with a penchant for growth stocks were once again victorious in 2019 after the S&P/TSX Composite Index delivered its best performance of the decade and the S&P 500 gained 30 per cent. Market watchers are mostly expecting another solid year in 2020, but potential returns might be delivered by a different group of stocks than those that powered the market forward in 2019.
Norman Levine thinks of Berkshire Hathaway as the “ultimate value stock.” The Omaha, Neb.-based conglomerate has been mired in a holding pattern for the past two years, trading between US$185 and US$220, but finally “stuck its nose up” in late November, he said. Value stocks have grossly underperformed momentum stocks for the past three years, Levine said, but investments in the former have picked up, hinting that a full market shift toward them could occur in 2020.
Diamond Estates Wine and Spirits has twice filed for bankruptcy in its brief history, but David MacNicol isn’t concerned it is heading for a third. Diamond Estates is his play on wine becoming available for purchase at convenience stores in Ontario. The company’s stock is trading just above 20 cents, but MacNicol expects that may change due to a reverse split in 2020. The best thing that has happened to the Niagara-on-the-Lake, Ont.
Boyd Group Income Fund has “the most beautiful 10-year chart you’ve ever seen,” Jason Del Vicario said. The Winnipeg-based collision repair shop operator’s stock has grown to more than $200 from $5.45 during those years, with just one deep selloff at the end of 2018. In 2020, the income trust plans to convert to a corporation, which Del Vicario expects will result in more attention from foreign investors, given that any limitations on them imposed by the income trust structure will be dropped.
Yeah ok and the dupes who read this will dump a bunch of money into these same portfolios and lose their shirts. Rigged game.