The Globe and Mail attempts to identify large-cap Canadian names that
have historically weathered
market volatility in its Thursday, Nov. 10, edition. The Globe's Ian Tam writes in the Number Cruncher column that the
outcome of the U.S. presidential
election was certainly unexpected
for many investors, likely
resulting in increased volatility in
many financial markets on Wednesday. This
week, Mr. Tam looked
to create a conservative equity
strategy that ranks stocks for the
Canadian market based on the
best combination of several
factors such as five-year and three-year historical
beta, one-year standard deviation of
returns (this is a measure of price
volatility where lower measures
are preferred), earnings variability (which measures
how volatile a company's
earnings have been historically,
lower numbers are preferred), price to earnings, price to book, and three-month earnings revisions. To qualify, stocks needed to have a
market capitalization of $1.2-billion
or more. Mr. Tam's stocks that appear able to weather volatility are Telus, Canadian Imperial Bank of Commerce, Fortis, North West Company and Metro.
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