Brockhouse Cooper

Archives: 2011 — Mar–Apr

"We have been calling for private payrolls to reach 250,000 per month for some time now, and we are finally there," said Pierre Lapointe, a macro strategist at Brockhouse Cooper."

NDP menace evaporates under scrutiny
- Montreal Gazette, April 29, 2011

"Analysts Pierre Lapointe and Alex Bellefleur at Brockhouse Cooper went through the NDP platform looking for things to worry about. They found a few, but concluded that the party’s policies seem mixed at worst."

Three charts to start your week
- Globe and Mail, April 18, 2011

"China’s appetite for global commodities continues apace, as shown by recent trade numbers reflecting China’s manufacturing activity."

Attractive EM valuations a shield against higher U.S. rates
- Financial Post, April 15, 2011

"Fast-rising U.S. interest rates were a heavy burden for emerging market stocks in 1994 and many investors are anticipating a similar fate when the U.S Federal Reserve moves to tighten its monetary policy in the months ahead. But Pierre Lapointe, a macro global strategist at Brockhouse Cooper, isn’t buying the parallel because EM valuations are much more attractive now than they were 17 years ago."

Small cap glory days are over
- Globe & Mail, April 13, 2011

"Small cap stocks in the United States and elsewhere have enjoyed an impressive run ever since the economic recovery kicked in, outperforming their large-cap brethren by a wide margin. But with the recovery shifting to economic expansion, is there more room for outperformance? Pierre Lapointe and Alex Bellefleur at Brockhouse Cooper think not."

Party isn't over for upside earnings surprises
- Globe & Mail, April 8, 2011

"Mr. Lapointe and Mr. Bellefleur noted that analysts’ 12-month forward earnings estimates for the MSCI World stock index – a global benchmark – have risen by 0.8 per cent over the past three months. It continues a trend of steadily rising expectations that has been in place ever since the recession ended. This is contrary to the broad historical trend; indeed, the overall average over the past 25 years shows that more often than not, analysts opt for downward revisions on a quarterly basis."

Q1 earnings season looks promising
- Financial Post, April 7, 2011

"All signs point to a positive earnings season ahead, an outlook that bodes well for equity markets", according to Pierre Lapointe.

Bank Stress Tests May Be Too Lenient in Europe
- Bloomberg, April 6, 2011

"Stress tests into whether European banks can withstand 20 percent losses on sovereign debt holdings may be too easy and lull investors into a false sense of security, according to Brockhouse & Cooper Inc. strategists."

Japanese equities cheapest in years
- Financial Post, April 4, 2011

“We are now at the point of maximum pessimism on Japan, and this is reflected in valuations that are at multi-year lows.”

U.S. hiring points to increase in confidence
- Globe & Mail, April 1, 2011

"Pierre Lapointe, global macro strategist at Brockhouse Cooper in Montreal, reminded clients in a note that it will take monthly job creation of 250,000 to make a serious dent in the unemployment rate, which remains well above the Fed’s preferred level of about 5.5 per cent."

Are risks starting to outweigh rewards?
- Financial Post, April 1, 2011

"Pierre Lapointe, a macro global stratagist at Brockhouse Cooper doesn’t think equity markets can make up the additional ground needed to fully recoup their financial crisis-related losses this quarter. But he does believe they can keep moving in the right direction."

Corporate profit margins still well below pre-crisis peak
- Montreal Gazette, March 30, 2011

"There is more upside for profit margin expansion in Canada than in the U.S.,” said Pierre Lapointe, global macro strategist at Brockhouse Cooper in Montreal."

Election won't change attractiveness of Canadian stocks, experts say
- Montreal Gazette, March 26, 2011

“Canadian stocks do not exhibit clear pre- and post-election patterns” that would enable one to predict either gains or losses, say analysts Pierre Lapointe and Alex Bellefleur at Brockhouse Cooper, a Montreal brokerage and consulting firm."

For TSX, it doesn't matter who wins Canadian elections
- Globe & Mail, March 25, 2011

"Canadian politics simply don't matter that much for the country's stocks. We are not worried by the successive minority governments and elections the country has experienced in recent years."

Rate hikes less likely during elections
- Financial Post, March 23, 2011

"If an election is called for May or June, said Pierre Lapointe, a global macro strategist at Brockhouse Cooper in Montreal, it could be late summer before the new government takes office and tables its budget."

Taking stock of a looming slump in China
- Globe & Mail, March 22, 2011

“Specifically, we are concerned by the country’s property and credit markets at a time when monetary authorities are tightening aggressively,” wrote Pierre Lapointe and Alex Bellefleur of Brockhouse Cooper in a recent report. “Moreover, we question the future of China’s real estate values, at a time when significant supply is hitting the market, banks are less willing to lend and monetary tightening is ongoing.”

End of QE2 no problem for equities
- Financial Post, March 22, 2011

"The end of QE2 south of the border will be bad for bonds no doubt, but equity markets should be just fine, says Pierre Lapointe, a macro strategist at Brockhouse Cooper."

Smart money recognizing pullback as opportunty
- Financial Post, March 21, 2011

“Retail investors are often a contrarian indicator when market uncertainty increases. For this reason, we would side with institutional investors, which now see a continuation of the market rally, Pierre Lapointe, a global macro strategist at Brockhouse Cooper in Montreal said in a note to clients."

Stocks can rise despite peaking profit margins
- Financial Post, March 18, 2011

"Peaking profit margins do not mean P/E ratios will necessarily drop, says a new report from Brockhouse Cooper."

Fear, fall, rebound
- Financial Post, March 15, 2011

"Pierre Lapointe, a macro global strategist at Brockhouse Cooper still believes Japan’s economy can overcome its dire circumstances and that globally, economies will also be spared its ravages. But he also recognizes..."

Stock markets have a history of withstanding calamities
- Globe & Mail, March 15, 2011

"If the Bank of Japan reacts forcefully to the disaster, implementing a round of asset purchases similar to the Federal Reserve’s quantitative easing program, inflation could rise, helping Japanese companies boost revenue once again, said Pierre Lapointe, global macro strategist at Brockhouse & Cooper Inc."

Are investors underestimating Japan's impact on markets?
- Financial Post, March 14, 2011

"Pierre Lapointe, a strategist at Brockhouse Cooper says limited losses on equity markets outside Japan likely reflects the Bank of Japan’s monetary actions and a belief that the economy can rebound from the disaster fairly quickly."

Climate change means agriculture exposure a good bet
- Financial Post, March 14, 2011

"Pierre Lapointe, global macro strategist for Brockhouse Cooper, said that one commodity segment that will continue to spike in the face of volatility over the next few years is agriculture. And it’s not just a burgeoning global population that is putting supply pressures on agriculture. Mr. Lapointe points out..."

How to Play the Emerging Markets
- Despite the gloomy headlines, opportunities are cropping up in unexpected places
- Wall Street Journal, March 12, 2011

"The increase in political turmoil is making investors look more at the idiosyncratic risks of each emerging market," says Alex Bellefleur, a financial economist at investment bank Brockhouse & Cooper Inc. in Montreal."

Sub-Saharan Africa's big move up
- Financial Post, March 12, 2011

"As Pierre Lapointe, a macro global strategist at Brockhouse Cooper in Montreal, contends, the increased optimism and focus on Africa is more than justified."

Inflation genie could spook emerging markets
- Financial Post, March 8, 2011

"Pierre Lapointe, global macro strategist at brokerage Brockhouse Cooper, said some of Beijing’s decisions proved successful in terms of curbing housing price increases, to 6% from 12%."

Live from New York! It's jobs Friday!
- Wall Street Journal, March 4, 2011