Richard Abboud dropped out of university to pursue entrepreneurship. Today, he’s the Founder & CEO of Forum Asset Management, a $4 billion asset management business—and one of the country’s most vocal advocates for a more ambitious Canada.
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FROM AMBER’S DESK
I’m back. Thank you for indulging my month off – spent up north with the kids. I feel a bit like the person who discovered sliced bread 100 years after everyone else. I never grew up going to cottages and now I find myself telling everyone how great it is. The fresh air! The slower pace! The children outdoors – no screens! It filled my cup and I am ready to hit the ground running for our brand new season. We have so much in store for you. Our guest lineup is one of the best we’ve ever had, our merch store will (finally) be launching soon, and a few more fun surprises this year. Let’s get into it!
Here are five things to know today
1.
Markets on edge – first trading day of September
Stock markets are starting the first trading day of September deep in the red as bond markets around the world sell off. Yields are hitting new highs across the board: global bond yields are the highest since 2008, the US 10-year is at the highest since January 2025, the Japanese 10-year hit 3% for the first time since 1996, and the US 30-year is nearly back to where it was before the Treasury intervened with a bond buyback program. The bottom line: interest rates are increasing as inflation continues to run hot around the world. The bond market is asking how serious the Federal Reserve is about fighting inflation. Right now the market is pricing in a 70% chance the Fed will hike rates at their meeting on September 16- but with no forward guidance coming from Fed Chair Kevin Warsh anything could happen. And it’s making the stock market nervous. Will it be enough to topple? It wasn’t in August with the S&P 500 and the TSX hitting new record highs during the month. Earnings have been a strong buffer to headwinds whether it be from the bond market, the Strait of Hormuz, or renewed tariffs. It’s a tricky backdrop for a new IPO – Anthropic is slated to go public sometime later this month with ambitions of raising over $85 billion. Not valued at $85 billion, RAISING $85 billion. Not to mention that September is one of the worst month for stocks.
Source: Bespoke Investment Group
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“I used to think that if there was reincarnation, I wanted to come back as the president or the pope or as a .400 baseball hitter. But now I would like to come back as the bond market. You can intimidate everybody.” — James Carville |
2.
Oil up 2% on Hormuz escalation
Oil prices are gaining for a second day in a row after two supertankers were struck late yesterday fanning the flames in the bond market. The Strait remains quasi opened (or quasi closed depending on your outlook) with traffic running at half pre-war levels. In case you are keeping track, it has now been 185 days since the Strait’s closure. The US has been touting the Strait is open for business, but these reports suggest tankers remain vulnerable to projectiles.
3.
TC Energy upgraded
TC Energy was upgraded at Jefferies calling the recent underperformance “fundamentally unwarranted.” Shares are down 8% over the past month along with other pipelines as higher bond yields pressure highly indebted dividend paying stocks. Jefferies is recommending investors take advantage of the weakness.
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“TC Energy’s) predictable growth is now more attractively priced” — Sam Burwell, Jefferies |
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4.
Medtronic pops 5% on better earnings
The medical equipment maker beat profit expectations as organic sales grew 13.7% – which was higher than expected. Medtronic also increased its organic growth sales forecast as all divisions including cardio, surgical and diabetes were higher than anticipated. The rub is that margins were slightly below expectations. The stock has struggled over the past year, but staged a slight recovery from the lows at the beginning of the summer. It trades at 15x earnings and sports a 3% dividend yield.
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5.
GoPro soars 82% on YouTuber stake
The embattled camera maker is surging after Mark Fischbach – aka Markiplier – became the largest single shareholder in the company owning 8.5% of shares. GoPro warned earlier this year it may not be able to continue and shares are down 90% over the past five years as the company says it is exploring strategic alternatives. Markiplier boasts 38.9 million subscribers on YouTube known for making everything from full movies to bite-size YouTube shorts. “I want the company to succeed,” said Fischbach in an interview. GoPro is trading as a penny stock with a still elevated 16% short position – so the move is likely a response to an extremely low bar for any positive news.
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