On the Canadian malaise, the loss of its majority in parliament by Trudeau’s Liberals sets the stage for some accommodation between the environmental agenda of the Liberals and the needs of the energy west. Andrew Scheer’s disappointing handling of the election and his personal issues have now removed him from the scene so a more impactful opposition should be able going forward to promote the interests of all Canadians, and not just Trudeau’s supporters.
Tax loss selling season is here with most of the energy and energy service sectors having done poorly this year. The S&P/TSX Energy Index has a 2019 range of 171 at the high and 119 at the low. As we write this at our cut-off date of December 13th the Index is at 139. Our approach is to use the next two weeks left in tax loss selling season (final day December 27th) to buy good companies at bargain basement prices.
Watch out in your emails for Action Alerts in the coming days for new investment recommendations and for confirming table pounding BUYS. We expect to add 4-5 new names and endorse Table Pounding BUYS on ideas now on our Action Alert BUY list.