Ben Gossack

[music] >> Hello, I'm Greg Bonnell. Welcome to MoneyTalk Live, brought to you by TD Direct Investing.

Every day, I'll be joined by guests from across TD, many of whom you'll only see here.

We're going to take you through what's moving the markets and answer your questions about investing.

Coming up on today show,we'll discuss what the recent market performance has only been driven by handful of stocks or if there is more strengthening the surface.

In those days WebBroker's education segment, Caitlin Cormier will take us through how you can find dividend information on the platform. And here's how you get in touch with us.

Just email moneytalklive@td.com or fill out the viewer response box under the video player on WebBroker.

Before you get our guest today, let's get you an update on the market. We are heading into a long weekend on both sides of the border.

I don't want to get ahead of myself, couple of days to go, but when we get there, we will have close the books on the first half of the trading year. Right now you're up 50 points on TSX Composite Index, a little shy of 1/3 of a percent. Some of the stocks that are capturing attention to the up and down side, Shopify sees a bit of a risk on appetite for tech in the last couple of days. You've got Shopify at 8680, a little more than 3%.

Teck Resources and the material side under the pressure today.

Coming off the lows of the session. At 5388, it sounded very modest $0.44 at this hour.

South of the border, I want to check in on the S&P 500.

Jerome Powell has had a lot of tough talk for us in recent days and weeks is when it comes for the need for higher borrowing costs to combat inflation fight taking longer. The central bankers are in Portugal today where Jerome Powell, again, is delivering that message.

Right now you got the S&P 500 up a very modest 2 1/2 points, 66. The NASDAQ is rallying.

they are up 68 points or half a percent. And carnival, it seems like the cruise business is attracting investor attention in the last couple of days. They've had some good rumblings out of the space in terms of demand for people wanting to go on cruises and carnival up another 10% today, 1747.

It's been quite a move to the upside in the past couple of sessions.

And that's your market update.

Stocks and had a strong performance in the first half of the year, but some pundits claim that it's only a small handful of those big tech names driving the rally.

while our guest today says if you look under the hood, there's actually more strength to be found. Joining us now is Ben Gossack, portly a manager with TD Asset Management. Great to have you back on the show.

>> Thanks for having me back.

>> You will see a lot of it out there. We follow different finance blogs and shows, the you see the rally in the S&P 500 this year, seven names and no more.

What do you make of that theory?

>> There was a strong narrative exiting last year and beginning this year. Earnings expectations were too high, the economy was going to slow, therefore equities were going to underperform and so we have seen actually equities outperform and I think people have rationalized that to looking at the market weighted cap indices and are saying that this rally been seeing are driven only by seven stocks. We have yet to see this recession a and Sowa yes things have moved but if it is only seven that it can be dismissed. I think we arein an industry that's obsessed with the sun.

We care about solar events, especially rotations around the sun, and so it when you look at the market,when you look at stocks, especially the biggest weighted stocks, they made bottoms at the end of last year.

> This happened to happily coincide with the calendar year.

>> Exactly. So stock falls 50%. Just to get back to flat, it has to rally 100%.

And if that counting happens to happen around January 1, then yeah, if the stock is up 30, 40%, and again, it still hasn't even met the prior high, it used to as a strong start to the year.

So I'm seeing a lot of these bar charts where again, the NASDAQ is never madethis quite of a strong start to the year, it negates the fact that you couldn't only stocks last year and they closed at their lowest in terms of their prices.

>> Let's start breaking it down.

You always bring the charts and I always appreciate that.

We're gonna start breaking these names down in little groups. Here we have Apple, Microsoft and Nvidia. What is this chart telling us?

>> What I really wanted to do was put seven stocks on the same chart and then I realized… It's too much information.

So I broken up into two.

We are going to focus on the seven stocks everyone is talking about. But I broken into two parts.

So we're looking at Apple, Microsoft and Nvidia. And there are narratives about AI, but let's just ignore that. Let's look at the prices when you can see that all of last year, the stocks underperformed. In many cases, in the case of Nvidia, down 40 to 50%.

They made their lows at the end of last year, and so they are making their rallies now. Nvidia has exceeded its prior peak, but again, if it's down 50%, it has to rally 100% just for you to be flat. I expect most people that are watching us right now only stocks in their portfolios and therefore you're not really up 100% or 50%, you are flat.

So you've just made your money back. And now the real hard work happens in terms of making new highs. So that would be in cohort one is just Apple, Microsoft Nvidia.

Yes, they rallied a lot this year, but as a shareholder and especially a longer-term shareholder, your even Stephen.

>> Let's get to the second cohort then. I think we have Meta, Tesla, Amazon and Alphabet in this course.

>> Yeah. Everyone is talking about these companies making massive moves, how can they keep going higher?

And again, all of these stocks made their lows in terms of prices at the end of December. They are rallying but you can see that with this cohort, there is still so much more to go before they even hit their prior peaks.

So again, fundamentals will drivewhether in some cases some companies will change business models.

So Netflix with prescriptions, putting some ads, why that might be better. We know Meta was going after the Meta verse and now it's about cutting costs.

But just because these stocks have gone up 30, 40% from their lows,doesn't mean that there is not more to go.

So I just want to make sure that again, this is a feature of the fact thatwe rotate around the sun and that's when the stocks made their bottoms.

And just because they are up 30, 40, 50%, as a shareholder, you might still be underwater, especially for these last four stocks.

>> As he continued to continue looking at this narrative of only seven stocks driving what we've seen so far based on the solar calendar, it would suggest that the stocks are making advances. I have a chart showing us the S&P 500 advance decline line.

>> I have come on the show before talking about the trends underneath the surface of the market. My thesis is that the marketdata bottom last year, the market of stocks, and if you focus on market cap and large-cap companies, you lose track of the broader market and there are lots of stocks out there. What we are looking at right now is a market breadth indicator. We are looking at accumulation less the cumulation.so there's 500 stocks in the S&P 500, if the stock closes up for the day, that's a +1and if it closes down, 21. If there are 490 stocks up and 10 stocks down, that's how we make our mass and we counted every day.

It depends on your starting point. Clearly last year, we were in a downtrend and so the D cumulation picked up, but ever since the October low, if it was only seven stocks, we would be making an advance in this line. And so every day, there are more stocks that are up and this trend has continued to this day since October of last year.

so again, it's more than seven stocks, it is these large market Stocks are obscuring. And also I think there are a lot of people that sat on the sidelines and it helps to rationalize this and say hey, I didn't miss out, I wasn't wrong, it was just seven stocks. But there's way more participation happening in the market given that again our belief is that stocks bottoms last year.

>> Going back to last fall or late last summer, you would've been over here showing us homebuilder charts and some pick up there. I think lately there has been a sort of broader conversation around homebuilder finally starting to pick up. This shows us where the pickup might have actually begun.

>> We have found it's been helpful to look at this market on a relative strength basis versus looking at absolute levels.

It is only recently that I'm hearing a lot of chatter about homebuilders. Isn't it all dead homebuilder, homebuilder stocks seem to be doing well in an environment where mortgage rates are high?

we see what has happened to activity. But we marked the bottom for homebuildersto be March of last year.

And what was most notable and surprising to us, in fact counterintuitive and the definition of contrarian, is that the homebuilders, which would have been the most sensitive to interest rates, bottomed when the Federal Reserve began their unprecedented hiking.

Now does that mean that people who bought homebuilders ignored the Fed?

I would show people that charred and say start earlier.

They started to underperform in October and November 2021 and lost a lot of value between October 21 and March 2022.

So the market, in its wisdom, took out the value, punished the stocks and by the time we got to March had priced in the fact that new-home sales would be down, existing home sales would be down, although type of activity would be factored in.

The part that I appreciate more and more is just how far stocks can price and bad news.

Sometimes we are led to believe it 6 to 9 months.

In the case of homebuilders, it's been over a year that they were able to price in the bad news.

>> Always fascinating stuff with Ben Gossack. We are going to get your questions about global stocks for bed in just a moment's time.

And a reminder that you can contact us at any time.

Just email moneytalklive@td.com or fill out the viewer response box under the video player on WebBroker.

Now, let's get you updated on the top stories in the world of business and take a look at how the markets are trading.

Jerome Powell continuing his tough talk in his fight against inflation. The Fed Chairman is at the conference of central bankers in Portugal. He told the audience today that there is a "More restriction coming"when it comes to interest rate policy.

Powell says the strong labour market will likely drive more rate hikes in the coming month.

The market is digesting that information. Semi conductor stocks in the spotlight today amid reports of Washington considering new restrictions aimed at China.

This is the Wall Street Journal, reporting actions from the Biden and ministration could include stopping shipments of chips that fuel artificial intelligence.

Of course, Nvidia has been a leader in the space, in AI. Stocks are coming off the lows of the session off the heels of that unconfirmed report, 416 and change right now, you got Nvidia down about half a percent.

Let's take a look at Alimentation Couche-Tard, grew the bottom line in its most recent quarter largely driven by strong margins and its US and European fuel businesses.

Same time, sales at its convenience stores in Canada were also pretty strong, up almost 6% compared to the same period last year.

We got Couche-Tard right now up a little shy of 3%.

A quick check in on the markets. We will start your own Bay Street with the TSX Composite Index. We are in positive territory since the last time I checked and indeed we are still there.

66.2 will collect the upside, 1/3 of a percent. And the S&P 500, Jerome Powell talks tough in Portugal, it's still in positive territory, very modest. Up seven points, a little shy of 1/5 of a percent.

We are with Ben Gossack take your questions about global stocks.

We will start here at home.

With the outlook for Enbridge, the big pipeline company?

>> Enbridge, I put it within the other energy stocks.

We could talk about A&P's. I typically have shied away from pipelines.

In fact, I shy away from many companies with business strategy is to have to invest a ton of capital with questions on whether they will get a return on that capital. I think when it comes to the Canadian pipes, it's well understood that it's very difficult to build new pipes. So there is an entrenched competitive advantage, but they have a challenge in terms of growth.

And their business requires a tremendous amount of capital. So we haven't seen the great returns on capital.

So I have avoided them.

The other thing I find, that people find attractive about them are there dividend yields.

If you look at their price charts, in many cases, they haven't grown for 10 years. But people are okay with that. They're like, fine, I'm flat, but I'm getting my 67% dividend yield. On that I would argue, look at their shares outstanding. The fund that growth, there is dead but they also issue shares.

So as a shareholder, you are getting a 6% yield. Every time the issue shares, you are getting diluted along the way. It something again, take a look at that, take a look at the shares outstanding. In the case of energy in general, it was a sector to be overweight I'd say the last two years, but we've been trimming along the way. Again, we have rotations going on within the market.

There are areas of the market that we think have made bottoms and are improving and energy, for us, seems to be a funding source.

>> You mentioned in your mind you classify the pipelines and with the energy names. Some people will throw them in the utilities baskets.

what about that kind of thinking do you think is perhaps wrongheaded?

>> I think it's okay to… The index makers created 11 sectors, right?

and so I'm all about let's not think about the world is 11 sectors, let's break it down. So people want to think about it with utilities, I would say throw it in there with telecoms.

Again, it's the same style of business where your growth is going to be funded by your capital expenditures.

In the case of a telco, they have to bid for spectrum, they have to build these networks and towers, they have to fund and subsidize the cell phones that we have in the hopes that we will sign these $80, $60 monthly contracts and consume services.

So there's no guarantee that they get it and then it's very competitive.

They are always fighting for consumers. So I would chalk up a pipeline, a utility, a telco into the same category.

And then if you look at the portfolios I manage, those aren't typically the places I have a lot of weight in.

>> That is the first time in the more than the decade I've been doing financial news programs that someone through the pipelines and with the telcos but your reasoning makes sense to me. You learn something new every day. What is your guest to be one court? We were talking about energy, let's stick with the theme, this one in particular: Suncor.

>> It is a stock that we don't own many companies in this is a stock that our company transitioned. Great assets, but the knock on them is that those assets weren't well-managed and safety issues in the workplace. There is an activist investor that got involved. They changed the board. And there is new management. And so now it's a question of can you management come in and turn things around?

And it will require some patience. And you also can't ignore the macro factors. So that's idiosyncratic to Suncor specifically, and with Suncor and all the other energy companies, it's the sort of tension betweenan economy that slowing down. And in the fact that it is hard to create supply.

And that's going to be an ongoing debate. So think there's a rule for energy in your portfolio, but right now I don't think that's a place where we have put a lot of our capital.

>> As always, make sure you do your own research before making any investment decisions.

got lots of questions coming in for Ben, let's take another one. So when is asking, are we setting ourselves up for a big drop down the road?

Of course when markets gain, people get nervous that markets will move in the other direction.

>> Whenever I hear that, I'm like, just you see.

And to answer that question, you're always going to be right.

Just like a broken clock is right twice a day. Although I was watching a TV show and the joke was, they said it was one today. It was more of a joke on the person.

So yes, you can always say that at some point, things will go down.

Markets tend to rise slowly, come down hard.

I would characterize this in the way I've been positioned and that doesn't mean that how people in the world is, they will look at it differently.

And again, time frames matter too. I think there is a group in the market that is saying, we haven't seen this recession.

You don't typically own stocks ahead of a recession.

Therefore, wait for the recession to happen and then engage.

The difference between myself and them, I don't disagree with anything on an economic basis or the fact that we could see an increase in unemployment, companies fail, I agree with all that.

I'm arguing that stocks have priced in the bad news or a good portion of the bad news, and therefore, I am willing to engage and participate in certain sectors that people would be shying away from.

So it is very possible. And look, between now and who knows one, yes, there will be another 20%, 30% fall in the market. I think that just a feature of the market.

>> It's about when, right?

> Exactly. Timing.

I worked really hard on picking stocks, and sizing them in the portfolio and timing is always something I think everyone struggles with.

>> As always, make sure you do your own research before making any investment decisions.

we will get back to your questions for Ben Gossack on global stocks in just a moment's time.

And a reminder that you can get in touch with us any time.

Just email moneytalklive@td.com.

Now let's get to educational segment of the day. Today we are going to look at how you can find a stock dividend information using WebBroker. Joining us to walk us through it is Caitlin Cormier, client education instructor with TD Direct Investing. Caitlin, always good to see. Let's talk about finding a company's yield on WebBroker.

>> Absolutely. So just to go over a dividend, when a company has some money left over at the end of the day, they have a few different options about what they can do with that, they can paid out to shareholders in the form of a dividend or they can choose to allocate it elsewhere, reinvest in the company, those sorts of things.we are talking about companies are choosing to pass on some of those extra funds to shareholders. A lot of individual investors choose to buy a dividend just for that fact. They are looking for that regular income.

And to keep in mind, a dividend is always quoted as a dollar amount, but we also have a yieldthat we can find out. So topic to WebBroker and look at where we can find those numbers and the difference between the two.

So we are going to go ahead and click on research, top left-hand side, underinvestment, we are going to click on stocks.

So we are just going to choose this dividend paying company here. We are going to scroll down towards the right hand side just a little ways and we are going to see some fundamental information about the company.

So we got a lot there.

But I'm gonna highlight just kind of this area right here.

So we see the annual dividend rate which is a dollar amount, so 384 Canadian is the annual amount that you will get per share for a dividend. Now oftentimes, companies would pay quarterly dividends so you would get for example 1/4 of that every three months, but it's always coated typically in an annual amount, so that would be our annual dollar amount for the dividend for this company.

The other thing we are seeing here is the dividend yield and this is 4.78%. How do we get this number? To get that number, all we have to do is take the annual dividend rate, so that dollar amount, and then divided by the share price. So that dividend yield is constantly going to be changing.

We put it as a yield, you can compare it against other companies but keep in mind that is just a percentage there and it is just based on the share price versus the actual dollar amount there.

So the other pieces that you might want to look at some history on a dividend to make sure that a company is paying those dividends on a regular basis. So what we're going to do is you're going to come back towards the top and click on the events button.

So a dividend, if a company pays a dividend, it is their option to continue to pay that dividend.

They don't have to.

they are not required to continue to pay dividend.

It's the day her decision if they want to continue paying it, if they want to skip it, if they want to increase or decrease it,that's at the discretion of the company.

But here we can see some history as to how often the dividend is paid and kind of make sure that it's increasing over time.

So we can see on the left-hand side history of the past few dividend payments from 2021 to the present. There are a few that are upcoming, so we can see those one set of kind of been announced but haven't been paid yet.

We can see as well the actual amount of the dividend, so kind of the dollar amount.

Sorry, we are on the earnings announcements. Let's go ahead and click on dividends instead.

My apologies.

There we go. There is a little bit more history. Here we are looking at the event date and dividend shares, this is the amount we are going to be getting on an individual basis per quarter, the ex dividend date, the payment date, when you look at the dividend, the annualized dividend amount and which dividend it is.

We can see here that the dividend has been increasing over time so we are going back to 2018 here and we are seeing at the bottom that we are increasing the dividend over time, just confirming that this company is consistently paying dividends as well as increasing over time.

>> No Caitlin, if someone is new to dividend investing, they may come across the term DRIP. Can you tell us what that means?

>> Yeah, absolutely. The DRIP is a fun term for what is called the dividend reinvestment plan.

basically with dividends, when you receive a dividend from a company, the standard is to have it paid into the cash portion of your direct investing account.

So if you have a cash account, and RSP and tax-free savings,that dividend, one is paid, gets paid into the cash portion of your account.

Sometimes, you might want to choose to have the dividend reinvested, you'd like to basically increase your holdings in that underlying stock so what you can do instead is you can directthe dividend to go and buy more shares. If you own the stock at $75 per share in your dividend it was $100, then $75 of your dividend will go towards buying you an additional share and then the remaining $25 will get deposited to the cash portion of your account. There is no cost for the dividend reinvestment plan.

That shares bought essentially for free. Increases your holdings and can increase your dividends in the future because you are holding more shares.

It's a great option for those who are looking to grow the amount that is invested and grow their dividends.

But keep in mind that if you want to and role for the dividend reinvestment plan, you have to call the trading desk and speak with a representative to do that.

And you can also do either for one or two securities within your account or you can do for the entire account as a whole.

So if you had some companies that you want to reinvest dividends and some that you just want them to pay out, you have that option or you can roll in your entire account.

>> Things that, Caitlin.

> Thanks, Greg.

>> Caitlin Cormier, client education instructor at TD Direct Investing.

And make sure to check out the learning centre in WebBroker for more educational videos, live, interactive master classes and upcoming webinars.

NOW before get back to your questions on global stocks for Ben Gossack, a reminder of how you can get in touch with us.

Do you have a question about investing or what's driving the markets?Our guests are eager to hear what's on your mind, so send us your questions. There are two ways you can get in touch with us.

You can send us an email anytime at moneytalklive@td.com or you can use the question box right below the screen here on WebBroker.

Just write in your question and hit send.

We'll see if one of our guests can get you the answer right here at MoneyTalk Live.

Okay, we are back with Ben Gossack, take your questions about global stocks. Plenty coming in. This one in the past couple of moments. Can your guest share his thoughts on TJX?

That's T.J. Maxx?

>> T.J. Maxx or companies like Winners, off-rack retailers. They make their business where retailers or brands have oversupply. Or sometimes they make specific labels for those retail chains, but I think there was a pretty strong narrative last year that companies, brands, stores over ordered because we had a supply chain dislocation and then as soon as inventory came in, the world reopened and the consumers were now fascinated with travel.

You talked about carnival, other, Delta was a big story yesterday, but travel is still all the rage and that's where people want to spend their money. The inventory issue has been managed and well telegraph so it's an interesting watching the retailers and the brand kind of work through that inventory.

the other thing that I have a bit of question on on the offer a retail is But there's been this issue were the tray down his happen.

So I think we've talked in the past that the high-end consumer is fine and they continue to buy luxury and they are not, they seem to be immune to the economy or inflation.

We definitely know the low and consumer is struggling and the low and consumer, and yes, even including the high consumer, will go to a T.J. Maxx but we are just talking in general, we have seen in Canada that dollar stores work and you are rewarded as a shareholder but that thesis has been very challenging to execute in the US. We've seen the dollar stores in the US knock at the tray down where they have execution issues.

Consumers have been very specific about what where they have been going and what retailer they have been spending their money on her trading down. So I found that in the US, you could be right and be wrong and put money behind the stock that is not getting the tray down effect. So just something to be aware of. It seems to be working well in Canada but I think it's just a shortage of options for us as consumers.

But in the US it's a very competitive marketplace.

There are labour issues. You do have to continue to pay and attract people to work. Inventory and theft is a big deal and a big headwind for many of these retailers.

And so how companies manage that as well as important.

So you could be right on the theme, there is tray down, something like a TJX would benefit, it may not be as simple to execute given all these other issues going on.

>> My only insight into these names as I think marshals might be under the umbrella as well, you said winners?

In the before times, I go to a marshals, thus not where I buy everything, but I didn't mind going in.

Maybe they've got something there, and I can't find men's dress clothes anymore. It was pandemic, I just can't find them there.

>> It is going to be a wave of what they can acquire and sell. But even some brands, they talked about how they had a 60% increase in inventory,I will own websites, I don't see sales. They taken on the sales.

Maybe excess inventory went to a TJX or maybe they work through it. So it's very interesting and I think it is very idiosyncratic.

so proceed with caution.

I always caution people that you can be right and still be wrong and lose money.

Always monitor for that. I'd rather be wrong and make money.

>> That's TJX. Another question came in the past couple of moments.

The outlook for Meta, company formerly known as Facebook?

>> Compared to the other top seven stocks we talked about at the start of the show, that was the first to break down ahead of the other stocks.

Google, Microsoft, Apple continues to outperform last year where Meta struggled and a lot of it was how much capital they were spendingon the Meta verse.

now the metaphors has been replaced by AI, but a lot of it too was just not, they were a cash cow and they were throwing a ton of capital, and now they have decided to cut heads and be more rational and leasing companies that are more cost-conscious getting rewarded.

My struggle has always been with these companies is that it's an attention for eyeballs.

And so I've always struggled just in terms of looking for business graduate companies that I tend to become more attracted to, I'd rather not be dependent on if people want to travel, is it less Facebook, more Facebook, more… I struggle with that. If I'm on Facebook, can I be on Netflix at the same time or HBO max?

I always struggle with the attention space.

Nonetheless, if the company continues on their current strategy and it seems to be rewarded by the market.

>> Okay, that was Meta. Another tech name here. We talked about artificial intelligence, we'll talk about Nvidia. What does the future look like for Nvidia? It's had a big run off of all the AI… Some people use the word hype.

Is AI the real deal?

>> I think on a show we talked about semiconductors and semiconductors made a bottom in October and that was just a function of them going through the typical boom and bust cycle.

We had done work on the ground in Southeast Asia, meeting companies and finding out that the end was near.

And then we get the sort of AI hype. What I'm kind of thinking about nostalgically it is when I met with the company let's say like IBM years ago, DRAM or Watson?

Watson was on Jeopardy or Watson was playing chess and beading chess masters.

Everyone is telling me about how AI is going to change the world. It's exactly what I was promised that Watson was.

And so I find it very surprising when we talk about who are the AI leaders, IBM and Watson are not talked about, not even in the conversation. Yet these are all the same things that I was promised and just a lot of data, identifying tumors from X ways, all this kind of stuff. So I tell people, yes, are there new large language learning machines and databases that people are putting their capital towards? Yes.

Will they require chips that are sold by companies like Nvidia and others? Yes.

But just not to buy into all the hype. We were promised the world would change with the Meta verse and now no one talks about it.

There was talk about blockchain and alternative currencies changing everything but the people who are pushing the AI hype the most are the ones who were pushing the crypto story. I've noticed it's the same people.

Even 5G, how many times have people come on and said 5G is going to change everything, machines talking to machines?

I haven't seen that play out on the stock market. So yes, there is capital that has to be spent.

There is sort of a game on in terms of who can build the best AI bought, but we've been promised many of these things in the past. Even virtual reality.

There are movies that go back years into the 80s and we were promised virtual reality and that is still an ongoing thing.

>> I put the helmet on a couple of times.

I know Apple has a new product, they got these big helmets. That's need.

I feel queasy and I put it back down.

I don't really feel the desire to go back there.

> And one thing that someone, I was watching something that struck me which is we've all interacted to something like a ChatGPT or some of these bots and you're kind of amazed and blown away but then are you actually really using it on a daily basis? So there's been a hype, we've seen a lot of users, and then reality sets in. So yes, digital is a long-term trend.

We believe in digital.

And even 3D printing machines.

We were never supposed to buy Lego again because they could printed at home. And I still don't own a 3D printer.

So again, there is a hype. But yes, companies have to order a lot of these chips and what I'm hearing to cool it is for the private companies, private rounds, there companies that are trying to raise capital to build these AI bots, in the last wave, they were all building software and all that software they can get from the cloud. They basically rented infrastructure, but they actually have to buy these chips now so it's a bit of a change in terms of fundraising where they're raising a lot of money but them money isn't staying with the company, they have to buy these chips.

>> An interesting point indeed.

We will get back to questions for Ben Gossack on global stocks in just a moment's time.

As always, make sure you do your own research before making any investment decisions.

and reminder that you can get in touch with us at any time.

Do you have a question about investing or what's driving the markets?

Our guests are eager to hear what's on your mind, so send us your questions.

There are two ways you can get in touch with us.

You can send us an email anytime at moneytalklive@td.com or you can use the question box right below the screen here on WebBroker. Just write in your question and hit send.

We'll see if one of our guests can get you the answer right here at MoneyTalk Live.

We are having a look at TD's advanced dashboard, platform designed for active traders available through TD Direct Investing, taking a look at the heat map function. It gives you a nicer presentation of the market movers.

Right now we are screening by the on the TSX 60 by price and volume. You can see by the green on the screen literally you've got Shopify up by 2%. We talked about Alimentation Couche-Tard growing their profits, they are also making gains of more than 2%.

First Quantum is in the red to the tune of 1.6%. Now we have been showing you the heat map function for a while.

We've been screaming through the TSX 60 but it's not the only way that the heat map can present the market for you. Let's take a look at the S&P 100.

You concede that Tesla's dominating the screen in terms of green on the screen and the volume of shares trading hands. Tesla's up a little shy of 2% but we been talking just recently about Nvidia.

I told you of the top to show that the Wall Street Journal was talking about the fact that the Biden administration is perhaps mulling getting these GPs, these chips that are good for artificial intelligence, they might bring a new restrictions in terms of sending them to China.

You can find more information on TD Advanced Dashboard by visiting TD.com/Advanced Dashboard.

We are back now with Ben Gossack from TD Asset Management.

We've got a viewer who wonders… Let me pause here. We have a viewer who is wondering if you could give us an update on the luxury sector?

>> That means they been watching me before so I appreciate that.

I think of luxury as a sector is one of the ones that can continue to compound high single digits.

And it will nuts endured and it's one that is driven by human emotion.

And so these… It could be a luxury car, a bag, an outfit. It makes us feel good.

And if people see us with that specific item, they know we are special because not everyone can get it.

There was a bit of a hiccup in a narrative that luxury had sort of run its course, but I would argue that was very specific about certain areas, apparel and footwear. We have seen no give up and sort of the very high and, so that would be brands like a Dior, Chanel, LVMH. Even again, I don't like autos but I would put Ferrari and some other companies like that as a luxury.

Not everyone can buy, you have to be on the list.

again, those companies continue to push new highs.

There are other areas that might be considered luxury, desirable. They may be going sideways, they may be having idiosyncratic issues, but the high-end luxury market continues to work. And they continue to push in prices.

And there's an economic theory where they keep raising prices, we actually want more because again it's that scarcity, the desire.

>> What's the old saying? If you must ask the price, you can't afford the item.

>> Exactly.

One thing I would sort of highly to people, there is pent-up demand in China for mainland tourists. People have this expectation that when they dropped all the restrictions that all of a sudden, everyone would be jumping on flights and flying places. We have seen domestic travel get back to pre-COVID levels. We are very far from pre-COVID level for international levels.

why this matters is because it's much cheaper for the Chinese consumer to buy some of these items in Europe, given sort of taxes andanyone from Canada whose bought something in Europe, between current exchanges and tax arbitrage, it's better to buy these things in Europe.

COVID, there may have been 300 flights per week from mainland China to the US and Europe,, and they are only averaging about 25 flights per week.

Many people, their passports and visas have expired.

It's taking about one month to just get your interview, and then another two months to sort of process that. So this is getting deferred.

For me, there is still more to go butthis is a sector where I think, again, he can compound for years.

>> We have almost ran out of time for questions.

Technically we have. We will squeeze in one more. We have of you are saying they are investing in agricultural fertilizer stocks, what is your current take of potential with fertilizer pricing moving to the downside, Nutrien, Mosaic, would you think about the agricultural fertilizer space?

>> I think fertilizer, ammonia, is fascinating.

Effectively, because of the fertilizer, because of the fact that scientists were able to figure out that every plant needs nitrogen but how to deliver nitrogen to plants was always confounding people and we wouldn't have the population that we have today without figuring out how to put nitrogen into ammonia and feed it plants. So it's fascinating from a science perspective.

And it's difficult from an investment perspective. So we do go through boom bust and there's a lot of geopolitics in play. There are sanctions going on in Eastern Europe. They create a lot of fertilizer.

We have some big companies in Canada as well.

And all those stocks have been sort of dragging.

there is a role for fertilizer in the world but it's a bit more challenging from a stock perspectiveand you really have to watch the cycles and be really conscious of the geopolitics.

>> Always fascinating to have you on the program, Ben.

I look forward to the next time.

>> Looking forward to it. Have a great summer.

>> Will go after bed again one more time and see if he takes our call. Our thanks to Ben Gossack, portfolio manager with TD Asset Management.

Always do your own research before you make any investment decisions. Stay tuned for tomorrow show.

Bart Melek, global head commodity strategy with TD Securities will be our guest taking your questions about commodities.

We were talking with Bart this morning, we might have a discussion about oil off the top of the show.

You can get a head start with your questions, email moneytalklive@td.com. That's all the time we have for the show today.

Thanks for watching, we will see you tomorrow.

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