Moderate and Mellow Market Methods

Sector Spotlight

High Hopes

Canadian outerwear maker Canada Goose Holdings Inc. has been keeping investors on their toes recently. They posted earnings last week, and while they beat analysts’s expectations for profit and revenue in the most recent quarter, underwhelming forward earnings guidance dragged the stock down. Canada Goose didn’t waste any time trying to fix that; They came out this week with an ambitious financial outlook and strategic plan that includes bringing in new customers, expanding their line of products, as well as entering new markets. The stock quickly bounced back from its post earnings slump following the news.

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Canada Goose says its expecting annual revenue for 2023 to be between CAD $1.18 to $1.2 billion, but is expecting to reach CAD $3 billion in annual revenue by 2028 as part of their new growth plan. It’s certainly a lofty goal but having a strong plan in place is always a good place to start. Do you think Canada Goose has the potential to reach their new objectives?

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Meme Stock Stalkers

Hedge Fund Frennzy

Hedge funds are feeling the pressure…According to a Goldman Sachs research note, hedge funds that bet against stocks globally exited those trades last week at the fastest pace since 2015, beating the speed at which they exited the infamous meme stock frenzy 2 years ago.

While this short squeeze fell under the radar in comparison to meme stock mania, it was a short squeeze nonetheless. Hedge funds abandoning their short positions implies that stock prices rose so much that the bearish short positions became too expensive to hold onto any longer. This was sparked by the stock rally back on February 2nd following the U.S. Federal Reserve’s announcement of a slowing pace of rate hikes, leading many to believe that interest rates will be peaking sooner than later. The short squeeze saw the techy Nasdaq composite climb by 3.25% last thursday alone, its biggest single day rally in more than 2 months. This was of course followed up by a disappointing Friday where stocks were dragged back down to earth following stronger than expected U.S. jobs data.

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ESG

Hot Topic

The war on ESG investing is heating up down south! Last November, the U.S. Labour Department finalized a rule that allows retirement plan managers to consider environmental, social and government (ESG) factors when making investment decisions. Now, this may come as no surprise given the emergence of ESG focused investing in recent years, but the new rule has been met with strong oppositionfrom many. That was on full display this week as more than 100 conservative leaders moved to block the rule on what they call “woke” retirement investing. To be fair, they are arguing against banning gas stoves which could have an impact on home cooked meals across America in a big way. We are in inflationary times, after all! Do you feel you could give up your gas burner and go back to your old ways of cooking on a stove top? Essentially, they are arguing against the E – Environmental and the S part of the ESG rules?!?!… spitting into the wind.

It appears that this anti-ESG movement has picked up some steam as well, with Bloomberg reporting that ETFs in the U.S. with ESG goals had net outflows of U.S $772 million in January, compared to the US $953 million of inflows for the same month last year. As with any political point of contention there is a lot happening behind the scenes and a lot of different motives at play. Investors can only watch and see how this will play out.

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Financial Jargon Word of the Week: A gazelle company is a high-growth company that has increased its revenues by 20% or more each year for four or more years, starting from a revenue base of at least $100,000. In a sentence, please! I’m always on the lookout for the next Gazelle Company to invest in! ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ Discover your Investor Profile and get customized free, action items specific to the way you invest! Every week, we will be talking about the latest market news and strategies, aligned to keep you sharp and armed for opportunity and volatility. This newsletter is geared to YOU, based on your own Finliti Investor Profile! We believe that every investor is unique and therefore, should be aware of their actual risk tolerance. If you’d like to know yours, please find out here: Finliti Investor Profile. Get actionable insights into your personalized faction once you discover your inner wealth warrior! Understanding your personal risk tolerance is one of the key first steps before embarking on an investment or trading strategy. It tells you your location on the GPS tracker to your financial destiny! Thank you for joining the Finliti Community! Finliti Disclaimer 1. Finliti’s newsletter is published as an information service to our subscribers and may contain references to stocks, bonds, mutual funds, ETFs, cryptoassets, etc., but this should not be construed as direct or indirect advice or recommendation to any reader to buy or sell these assets. 2. Finliti believes the sources it quotes to be reliable, but does not guarantee their accuracy or completeness. 3. Finliti is not paid by any company to recommend its stocks. 4. Employees or publishers of Finliti’s newsletter may own the assets discussed in the publication for their own investment purposes. 5. Past results are not necessarily indicative of future performance. 6. The information provided is for general information services to our readers as a convenience the materials are not a substitute for obtaining professional advice vis-a-vis your personal situation. 7. Given the time critical nature of the market, the information in this article may become outdated and Finliti has no obligation to change the article. 8. Finliti Corporation is not a registered Investment Advisor or Broker Dealer. This newsletter relies on the “publisher’s exclusion” from the definition of Investment Advisor under Section 202(a)(11)(D) of the Investment Advisors Act of 1940and its corresponding state securities laws and on the exemption from registration under Section 34 (1) (1) of the Securities Act (Ontario) and its equivalents in Canada. Tell your friends about us! Unsubscribe | Update your profile