Category Archives: Market Outlook

Warning: Railroad Stocks Are Expensive. What Should Investors Do?

Railroad stocks have been really resilient in this economic downturn. Some are even making all-time highs! However, they are all expected to experience earnings cuts this year on a GAAP basis, which is not surprising given the far and wide impact the COVID-19 pandemic is having on the global economy.

Stock Price Chart on North American Railroad Stocks

Railroad stock data by YCharts. The 1-year price action of railroad stocks: CN Rail, CP, UNP, NSC, and CSX.

In other words, these railroad stocks are getting expensive. Some are fully valued. Others are slightly overvalued.

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Stock Market Crash: Wait or Buy Stocks Now?

The U.S. and Canadian stock markets made a lower high earlier this month. That’s a bearish indicator. Another stock market crash may just be around the corner. 

Source: Stockcharts with author annotation. Canadian stock market made a lower high in June 2020. The U.S. stock market’s chart is simila
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Stock Market Crash Coming: 2 Stock Investing Strategies

We believe the stock market has recovered too fast and that stock market crash 2.0 is coming.

COVID-19 is undoubtedly the biggest drag on the global economy. The pandemic has pushed up unemployment rates and pulled down GDP, as it swept through and destroyed multiple industries (think tourism, hospitality, brick-and-mortar retailers, retail real estate).

Some are optimistic about the situation, thinking that vaccines can save the day. Unfortunately, even when effective vaccines become available, it’s going to take quarters, if not years, for the economy to recover.

Additionally, COVID-19 isn’t the only thing that’s weighing on the global economy. Let’s not forget about trade wars, anti-racism protests, low energy prices, high debt levels, and the upcoming U.S. presidential election. They all add pressure and or uncertainty to the economy.

With the above backdrop in mind, here are two stock investing strategies you can consider. 

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