Trend spotting: Third-quarter earnings season – Joe Overdevest

Today on the show portfolio manager Joe Overdevest sits down with host Pamela Ritchie to discuss trends in the third quarter and what investors could expect in the remaining quarter of the year and even into 2025. Joe says even though interest rate cuts are happening, investors are waiting for more certainty in the markets before buying. He adds that some people try to time the market, but companies over time grow their earnings and the stock price usually follows, which highlights the power of compounding. For 2025, Joe says the economic picture is looking decent. He says with high level of earnings growth for this year and next year at around 10% for the US and Canada plus inflation in Canada and the US trending close to 3% and GDP growth in the US at around 3%, the US and Canadian economies seem to be on the right path. Joe also highlights the current energy picture.  With a drop in oil prices and fading optimism around China's efforts to boost its economy, this has weighed heavily on energy and materials.  He says the demand for commodities will be higher in the future and China is currently 10 to 50% of the demand depending on the commodity. Nuclear could be a solution for an energy transition, but it will take time. Joe adds natural gas could be a short-term solution for increasing electricity demand.

 

Recorded on October 9, 2024.

 

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