Pipelines "still reasonably valued"

Significant growth ahead, says 1832's Jason Gibbs.

Sonita Horvitch 16 July, 2014 | 6:00PM

 Jason Gibbs, vice-president and portfolio manager at 1832 Asset Management L.P., says that the Canadian equity market is in the seventh-inning stretch.

Investors are far from euphoric, he notes, and although certain stocks and sectors are getting expensive, there are still opportunities. "Classic dividend-paying stocks, such as pipelines, where the companies are growing their cash flow and dividends, are still reasonably valued," says Gibbs, whose specialty is equity income.

Furthermore, he says, the interest-rate environment for dividend-paying stocks should remain positive. "Rates are likely to remain lower for longer," he says. On concerns about possible wage inflation, Gibbs counters that labour does not have much pricing power, at present, "in the face of much improved technology."

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Sonita Horvitch

Sonita Horvitch  

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