Market volatility and policy shifts renew investor focus on pipelines, gold, and commodity yields
Stock markets have experienced significant fluctuations recently, influenced by factors such as trade tensions and economic uncertainties.
Lyle Stein, president of Forvest Global Wealth Management Inc., told BNN Bloomberg that market uncertainty is making investors hesitant to place future bets because of tariff concerns.
He noted that this uncertainty complicates company evaluations in such a volatile environment.
Stein suggested that upcoming first-quarter earnings reports could provide some clarity, as analyst reactions to these figures may offer insights into market valuations.
He added that while S&P 500 companies are reporting weaker earnings, they are not down as much as expected given the economic slowdown and high margins.
Stein anticipates that analysts may adjust their numbers in the coming weeks, which could aid in properly valuing the market.
Despite global market turbulence, Stein identified potential opportunities within Canada's energy sector.
He expressed a preference for the pipeline industry, highlighting yields exceeding five percent and the sector's North American focus.
Stein also described Canadian energy stocks as "intriguing," noting that despite recent declines in share prices, companies are in good shape, and oil prices around US$60 could be self-correcting.
Recent developments further underscore the potential in Canada's energy sector.
Prime Minister Mark Carney announced plans to develop both clean energy and low-carbon conventional energy to reduce reliance on imported energy, including from the United States, according to Reuters.
Additionally, Enbridge, a major pipeline operator, forecasts higher core profits for 2025, driven by strong oil and gas demand. The company plans to deploy nearly $7bn in capital and has increased its 2025 dividend by three percent.
According to Investor’s Business Daily, analysts suggest that Canadian energy stocks may present opportunities for investors seeking stability and growth.
Companies like Suncor Energy and Canadian Natural Resources have outlined plans to boost production and focus on efficiency.
Furthermore, the launch of LNG Canada's Phase 1, expected in mid-2025, is projected to add significant export capacity, enhancing market access and supporting upstream investment.
