Gluskin Sheff + Associates (TSX:GS) stock fell 1.2% on December 17. Gluskin Sheff is an independent wealth management firm that manages investment portfolios for high net worth clients. Shares of Gluskin Sheff have plunged 40% in 2018.
It goes without saying that Gluskin Sheff’s stock price has been, and will continue to be, sensitive to fluctuations in the broader Canadian market.
The S&P/TSX Composite Index has plunged 11% in 2018 so far, and the year is not done yet. There are considerable headwinds looming in 2019, and investors should be gearing up for choppy conditions.
Gluskin Sheff stock last had an RSI of 34, which is just outside of oversold territory. The stock touched a 52-week low in trading yesterday. However, the stock last paid out a quarterly dividend of $0.25 per share. This represents a 10.1% yield.
How should investors feel about Gluskin’s prospects, and the market at large, in 2019? It may be worthwhile to see what Gluskin’s chief economist David Rosenberg has been saying.
In an early December article Mr. Rosenberg pointed to the dovish turn taken by the Bank of Canada in its most recent statement. Economic indicators have weakened in late 2018, and the central bank has conceded that the global trade situation has weighed more on growth than originally expected.
A dovish turn by U.S. and Canadian central banks in 2019 may give the markets a period of respite. Financial stocks like Gluskin Sheff are potential bargains in late 2018, with this stock of particular interest with its sky-high dividend.
