Ted Dixon's blog

Canadian oil & gas stocks have been consolidating over the past month while other economically-sensitive stocks in the mining area have been soaring. If the global economy continues to recover over the summer, investors could warm up to the Energy sector again. Today on INK Ultra Money, we look at a Canadian junior producer where insiders have been buying the dip over the past month.

Today in the INK Market Report, we highlighted the bull market in Canadian junior mining stocks. While the North American economy may be challenged to put in a V-shaped recovery, Canada's Venture market appears to be succeeding with that letter of the alphabet. The S&P/TSX Venture Index jumped 5.6% last week and the Index is now up year-to-date. Money is clearly moving into the sector, pushing up valuations.

Canada's Venture Index is up almost 4% year-to-date (click for larger)

With the junior market being so strong, financings are finally getting done in the junior space. While most of the newly-raised money heads into the ground for exploration, some of it inevitably will find its way into stock promotion campaigns. It is always a good idea to read the fine print of any free newsletter touting a stock to see if the newsletter writer is being paid for coverage.

If you are wondering why the BMO (BMO) underperformed the other big banks on Friday, Jack Farley may have the answer in the latest Real Vision Daily Briefing. He does a nice job reviewing the Fed stress test results on banks. A BMO name stands out, and not in a good way. Today, I also look at the stunning developments in crypto finance and some big movers in the Healthcare sector. We also have a discount code for Real Vision's upcoming crypto conference.

In this week's Insights newsletter, we celebrate the Venture Index setting a 2020 high yesterday. Junior mining is leading the charge helping Venture stocks to lead the Canadian market for the first time in a very long time. Our insider of the week is involved with a company that has shifted focus from mining into transaction processing. In this case, we not talking hard rock mining, but an exciting area, nonetheless. Finally, Real Vision CEO Raoul Pal headlines our clip of the week. Click here to read.

David Rosenberg is back on Real Vision today with a bullish take on gold and healthcare. As for the rest of the market and the economy, that is a different story. He also sees a zombification of corporate America, a theme we discussed last week.

  Corporate zombies are on the roam

For those who are upbeat on the prospects of both the resource and public sectors in the years ahead, check out our video summary of today's INK Report on Black Diamond Group (BDI). Watch the premium video here.

Today feels like a D-economy day with most assets selling off. The daily narrative trying to make sense of the sell-off is pointing to rising concerns about COVID-19. That may well be. However, rising US cases and the potential implications have been building for awhile. Equally plausible is the slowing down of Fed asset purchases and concerns about the next round of stimulus. Alternatively, after rising in 7 out of the last 8 trading sessions, perhaps the Nasdaq 100 was in need of a rest and we'll be right back to blowing bubbles tomorrow.

Investors are back to square one when it comes to looking for yield as the Federal Reserve, in some cases with the backing of the Treasury, works to keep Treasury and corporate bond yields low. There are some big consequences of the easy money policy for many asset classes including stocks, foreign exchange, and cryptocurrencies.

Will the hunt for yield lead to Bitcoin and Ethereum?

One impact which does not get a lot of attention yet is the breeding of corporate zombies. As these zombies spawn on the back of Fed and Treasury bailouts, they haunt healthy companies making it hard to raise prices and generate profits. The zombies are D-economy warriors and are allies of the stock market bears and US dollar bulls.

Earlier today, Real Vision delivered  a big picture interview with economist Steve Keen who takes non-mainstream approach to assessing the economy. Since bubbly NASDAQ stocks have not yet managed to make new all-time highs, there is a growing risk that a bearish narrative will take hold as we enter into summer. At that point, Keen's scenario is in play.

In this week's Insights newsletter, we make the case for healthcare stocks. They could look particularly attractive if the broad market continues to rally even as the economy experiences headwinds from COVID-19. Our insider of the week is CEO of a small Canadian biotech stock that has been soaring. Finally, our broadcast of the week is a free Real Vision Daily Briefing episode that explains why the stakes are so high on Friday June 19th for traders.