Dec 30, 2016
BNN's Daily Chase: TSX winners and losers for 2016
By Andrew Bell
It wasn’t too bad a year at all for Canadian investors, with the benchmark Toronto equity index jumping almost 19 per cent heading into 2016's last trading session, nearly twice the gain in the S&P 500 tally of major U.S. stocks.
Mind you, the slump in gold and copper since 2011 has left the TSX well behind. Over five years, Canada’s bellwether is ahead a mere 29 per cent (excluding dividends) versus the 78 per cent jump in U.S. shares.
The strength in the TSX this year has been fueled by energy (up 32 per cent) and materials (up 43 per cent) after world oil prices climbed more than 50 per cent and basic industrial stuff such as zinc and steel rebar gained 60 per cent.
But here’s yet another reminder that dividends are what matters over the long haul: Assuming reinvestment, the TSX index produced a total return of 50 per cent over the past five decades, almost twice the gain from price appreciation.
RESOURCES ROUNDUP
On Commodities at 11:10 a.m. ET, we'll get a roundup of the year in resources with Michael Giordano, manager of the Stone & Co. Resource Plus fund.
And we’ll take a tour of the Middle East with veteran journalist and author Eric Margolis including his take on the spat between Donald Trump and the Saudis after Trump said America needs to block oil imports from the Gulf nation. Saudi Arabia's oil minister fired back that “at his heart President-elect Trump will see the benefits [of Saudi oil imports] and I think the oil industry will also be advising him accordingly that blocking trade in any product is not healthy.”
BOX OFFICE BOOM AND BUST
At 10:50 a.m. ET, we’ll take a look back at movies that flopped and dazzled at the box office in 2016, with critic Richard Crouse. And he’ll provide a preview for 2017.
I can’t wait for “Alien: Covenant.” But could someone come along and hold my hand? I don’t like that spore thing that flies into the feller’s ear.
STRATEGY SESSION
And at 2:30 p.m. ET, we’ll get tips on 2017 strategy from David Burrows of Barometer Capital Management. As of late November, his top picks included JPMorgan Chase & Co (JPM.N), Texas Instruments (TXN.O) and Ingersoll Rand (IR.N).
Have a great 2017, one and all.
