Insights: Canadian stocks still winning the trade war

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July 22nd, 2019

It is even taking us time to believe it, but Canadian stocks appear to be trumping US stocks in the China-US trade war. We mark the start of trade hostilities between the economic giants as the December 1, 2018 dinner between the presidents of America and China in Buenos Aires. At that time, the US essentially dropped a tariff ultimatum on its dinner partner. While the two sides agreed in Osaka last month to continue negotiating and not add any new tariffs, existing tariffs remain in place. As much as the mainstream media likes to term the situation a truce, there is no truce. Every day there continue to be economic casualties from the existing tariffs.

As the drag from higher tariffs in both countries slowly begins to work its way through the economic system, money may be slowly moving away from the tariff trigger happy United States. Since December 1st of last year, the S&P/TSX Composite Index is up 8.5% compared to 7.8% for the S&P 500 Index as of Friday. That provides a modest 0.7% advantage for Canadian stocks. However, that is before the impact of a strengthening Canadian dollar which provides another 1.8% pickup. A similar story is seen in the mid-cap area. The INK Canadian Insider (CIN) Index is up 4.2% versus 2.9% for the SPDR S&P MidCap 400 ETF (MDY).

Last week, the INK CIN Index advanced modestly, up 0.3%, outpacing the large-cap S&P/TSX 60 which fell 0.2%.


Top 3 Gainers Last Week

Company NameStock Symbol1 Week %
Kirkland Lake GoldKL8.5
Ero CopperERO6.3
Barrick GoldABX4.6

Top 3 Losers Last Week

Company NameStock Symbol1 Week %
Yangarra ResourcesYGR-8.5
CamecoCCO-7.7
Ensign Energy ServicesESI-.5

Returns are as of the last trading day of the previous week.

Featured Broadcast

Insider of the Week

Seymour Schulich

With a million dollar public purchase of Pengrowth Energy (PGF) shares this month, venerable Canadian investors and businessman Seymour Schulich is our insider of the week. His Pengrowth purchase is distinctly contrarian, with the stock down more than 50% over the past year and trading not far off its 52-week low of 44 cents. On Monday the stock closed at 49 cents. Mr. Schulich made his purchases between the prices of 48 and 53 cents.

INK Canadian Insider Index

1 Year Total Return Performance


Historical Performance

Annualized Total Return as of July 22, 2019 04:49 pm
1 Year -10.77%
3 Years 2.67%
5 Years 1.85%
10 Years 10.23%

5 Year Total Return Performance


The INK Canadian Insider Index is used by the Horizons Cdn Insider Index ETF (HII), a 2017 and 2018 Fundata Fundgrade A+ ® award winner.

To learn more about th ETF please visit:
https://www.horizonsetfs.com/ETF/HII

To learn more about the Index please visit
https://index.inkresearch.com
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