Medicine is among the white-collar professions in which artificial intelligence has taken hold, helping clinicians make diagnoses.Ron Chapple/Getty Images
A decade ago, 3-D printers were touted as a technology that would transform global manufacturing. Reports of new uses for 3D printers still come up occasionally but it's clear that the manufacturing revolution has been at least postponed.
Artificial Intelligence (AI) is now centre stage in the technology hype cycle and reasonable investors are right to be concerned that here, too, the industry growth expectations are wildly overstated. Companies like chip maker NVIDIA Corp., with a central position in AI development, would go from one of the market's top performers to underperformance in this event.
The forecasts for investment and spending on AI are truly mindboggling. International Data Corp., a technology consulting research firm, projected that AI spending will rise 59 per cent to $12.5-billion (U.S.) in 2017 and reach $46-billion in 2020.
The medical field will provide an early indication of the viability and potential expansion of AI. A joint project by Stanford and Harvard universities has already developed technology to detect breast cancer that is far more accurate than doctors, according to the M.I.T. Technology Review. Stanford researchers have also built algorithms that successfully screen for skin cancer.
The use of AI in medicine is only now ramping up. It is not difficult to envision a doctor's eventual role as more of a supervisor of technological output. In the case of cancer, an oncologist utilizes their initial and ongoing education and direct experience with hundreds of biopsies and other test results. An AI program, however, can be loaded with millions of test results and the patient histories afterwards, and absorb all research written in specific medical fields.
The potential for saving lives will help AI become widely adopted when the technology becomes sufficiently advanced, if it's not already. Providers of malpractice insurance will also be motivated to see AI involved in important diagnoses and procedures to reduce the possibility of error and limit their financial liability.
There are industries like retail where the proliferation of AI could be slower than expected – consumers usually prefer a more human touch – but medicine is an area where it appears to make a lot of sense. Investors looking to benefit from AI growth should follow developments in medical fields closely. If it succeeds there, it will likely spread widely through the economy.
-- Scott Barlow, Globe and Mail market strategist
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Stocks to ponder
Canadian Apartment Properties REIT. Everyone needs a place to live. But not everyone can afford to buy a home – especially at today's dizzying prices. That, in a nutshell, is why John Heinzl included Canadian Apartment Properties REIT in his Yield Hog Dividend Growth Portfolio. He takes a closer closer look at CAP REIT and explain why he believes it's an attractive pick for investors seeking steady income with a dash of growth potential.
General Motors Co. This car company reminded Wall Street that there are reasons to get excited about its stock besides the hype around its technology advances. Americans still want their SUVs, and the largest U.S. automaker beat analysts' profit estimates by boosting sales of those more lucrative models. While GM slashed North American production by more than a quarter, cost cuts kept margins at healthy levels. David Welch from Bloomberg News explains.
New Flyer Industries Inc. The stock of the Winnipeg-based bus and motor coach maker has been a strong performer over the years for investors with the share price rising 44 per cent in 2016, more than doubling in value in 2015, and rallying 27 per cent in 2014. Management is firmly committed to returning capital to its shareholders and five months ago, in May, the company announced a 37 per cent dividend hike. The stock's dividend yield is currently at 2.4 per cent. The stock may resurface on the positive breakouts list in the near future. For the past four quarters, the share price has rallied the day after the company reported its quarterly earnings results. Jennifer Dowty explains.
Roots Corp. Shares in Canadian clothing firm Roots Corp. dropped sharply in their stock market debut on Wednesday – a rare flame-out in what has been a banner year for initial public offerings in Canada. At one point on its first day of trading on Wednesday, Roots shares had lost as much as one-fifth of their value. They recovered somewhat to close at $10, down 16.7 per cent from the IPO price of $12, in one of the worst debut performances from a high-profile Canadian company in years. On Friday, the stock closed at $9.73, below their IPO price. Niall McGee explains.
Telus Corp. This dividend stock rocketed onto the positive breakouts list with the share price jumping 3 per cent on Wednesday on high volume with over 4 million shares traded, well above the three-month historical daily average trading volume of approximately 1.5 million shares. In a few weeks, the Vancouver-based Telus telecommunication company will be announcing its third-quarter results along with an anticipated dividend increase. The stock currently offers investors a 4.2-per-cent yield. The upcoming release of the iPhone X in November will be reflected company's fourth-quarter results reported in February, 2018. Jennifer Dowty explains.
Robo-advisers
Which robo is right for you? Here is the definitive guide
Rob Carrick examines all the robo-advisers currently operating in Canada and gives readers all the information they need to know in order to determine which robo-advisers might be best for you. Read the definitive guide here.
The Rundown
Canadian stocks reach new heights as TSX surges to record intraday mark
Canada's key stock market index surged to a record intraday high on Friday joining a global rally in stocks eight-and-a-half years into the bull market. The S&P/TSX composite index rose to 15,955 in midday trading, up about 63 points, taking out a previous high in February. The latest stock market gains continue a rally among Canadian stocks that started in early September, when bank stocks began to reflect better domestic economic activity and rising interest rates, which boost profits on loans. David Berman reports.
Canada stocks reach record high but 'Eeyore complex' pervades
Not even a record high can shake Canadian stocks of their 'Eeyore' complex. The grind higher has so been so long and tortuous, investors are loathe to put much faith in the rally. Kristine Owram from Bloomberg News reports.
David Rosenberg: Here's where to invest your money right now
David Rosenberg discusses what areas he likes right now for investing and why. Want to find out Mr. Rosenberg's view on where NOT to put your money right now? Click on this link.
Gold vs. bitcoin: A look at which holds more promise for your investment dollars
One of the odder aspects of today's markets is that bitcoin is soaring but gold, the original alternative currency, isn't. At first glance, this disparity doesn't make a lot of sense. Both commodities are essentially bets against government-backed paper currencies. If you're a libertarian or an economic pessimist who believes that dollars, euros and yen are doomed to ultimately fail, it makes sense to load up on substitutes such as bitcoin and gold. However, it's not immediately clear why you would prefer one of those alternative assets to the other. So what accounts for their different paths in recent months? Bitcoin's value in U.S. dollars has rocketed more then 450 per cent this year, while the price of gold has risen only 11 per cent since January. Ian McGugan explains.
How the wealthy are structuring their portfolios now
Successful investment portfolios have a lot in common with unforgettable novels and great-fitting bras: They've got to have structure. But how can investors – wealthy Canadians in particular – choose an asset allocation that ensures ample funding for the future and peace of mind today? After all, with more disposable income comes the temptation to invest in every great deal and passing fad. Kira Vermond talks to advisers who work with high-net-work investors about how they structure their portfolios.
HBC's sale of Lord & Taylor flagship store befuddles investors
After Hudson's Bay Co. announced on Tuesday morning that it is selling its flagship Lord & Taylor store in New York, investors who had bet on the retailer for its vast real-estate holdings were vindicated: Turns out, store space is worth more than many observers had expected. So why is HBC's share price still in the doldrums? David Berman takes a look.
Canada's credit-driven growth: An early-warning signal for investors
It's no surprise that the Canadian dollar and two year government of Canada bond yields fell significantly and simultaneously after the Bank of Canada's statement on interest rate policy. The value of the loonie has been increasingly determined by the two year yield spread – the difference between domestic and U.S. two year bond yields – with crude prices more or less an afterthought. It's likely that bond markets, in the form of falling yields, will provide the earliest warning that Canada's credit-driven growth story is about to end. And since yields have been the main determinant of currency value, the loonie will drop at this stage also, and this will be the signal for investors to pull in their horns and reduce portfolio risk. Scott Barlow explains.
Big banks or small lenders? A look at which stocks may benefit from Canada's new mortgage rules
Big Canadian bank stocks are cruising at record highs while smaller mortgage lenders are struggling, suggesting that investors have already decided how new rules on residential mortgage underwriting practices will affect key players in the Canadian housing market. But are investors reacting too soon, given the unknowns? David Berman takes a look at the banks and the new rules.
These stocks offer a safer, less expensive way to bet on the future of electric vehicles
Everyone wants to invest in the cars of the future. The challenge is the lack of obviously attractive ways to do so. Sure, you can buy shares of Tesla Inc., the single biggest name in the electric-car industry. But while that's certainly a popular option – Tesla stock is up 70 per cent over the past year – it's also a risky bet on a heavily indebted company that has almost never produced profits and has only just begun to face serious competition from the world's largest auto makers. Is there a less dicey, less expensive way into the sector? Many people in search of a safer bet are investing in companies that are likely to be key suppliers to the high-tech car industry. Ian McGugan explains.
Gig economy worker? Consider these investing strategies
No full-time job. No group RRSP. No pension. No problem. If you're among the growing number of so-called gig economy workers – doing piecemeal work for a variety of employers – investing on your own for retirement and other goals has never been easier. From app-based discount brokerages, to low-fee exchange-traded funds (ETFs), to robo-advisors, the self-employed have a number of options to get started at little cost without ever having to set foot in a financial institution. Joel Schlesinger explains.
Seeking portfolio diversification? Try exempt market securities
Beyond the public capital markets lurk investment opportunities you may have never encountered – securities sold privately. Businesses in need of capital raise money privately if they do not meet the criteria to list on a public exchange, or wish to avoid the time and cost of raising money in public markets. Private capital investments, commonly known as exempt market securities, encompass a range of debt and equity instruments as varied as bonds, mortgages, real-estate partnerships, income funds, oil and gas flow-through shares and hedge funds. Gail Bebee explains.
What fund manager Michael Decter is buying, selling, and hearing from investors about Trump
Michael Decter understands why some investors are so obsessed with the actions of U.S. President Donald Trump, especially when a single tweet threatens to start a war, trade or otherwise. While Mr. Trump may be unpredictable, Mr. Decter, the chief executive officer and chief investment officer at LDIC Inc., isn't overly worried about the markets right now. Even if there is a correction, stocks usually bounce back, in time. Read Brenda Bouw's interview.
In search of dividend stocks you can depend on
The most important thing for retirees depending on dividend stocks is, well, dependability. Those dividend stocks have to deliver every quarter or month to provide needed income. But what about the investment case for emphasizing stability when choosing dividend stocks? Can you get decent returns along with the comfort of knowing you own the shares of companies that are well positioned to keep paying dividends? Rob Carrick investigates.
Need financial advice? If so, watch out for advisor-client mismatch
When you talk to a financial advisor, what kind of advice should you get? Even many do-it-yourself and robo-advisor services offer clients the option of consulting an advisor as an add-on. There's still something to be said for talking to a human sometimes, and good advice can help your portfolio work better. Whether it's a full advisory relationship or an occasional consultation, what should you expect? David Israelson explains.
Others
The week's most oversold and overbought stocks on the TSX
Friday's Insider Report: Companies insiders are buying and selling
Thursday's Insider Report: Companies insiders are buying and selling
Wednesday's Insider Report: Companies insiders are buying and selling
This jewellery stock's sell-off could signal a buying opportunity
How to retire better, with less money than you think
TSX earnings scorecard: How third-quarter results have fared so far
Number Crunchers
Ten low-volatility Canadian value stocks
Nine auto stocks poised to benefit from hurricane recovery
Fifteen stocks for a cautiously optimistic investor
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What's up in the days ahead
Trick or treat? Norm Rothery is promising dividend investors quite a treat on Monday with a dividend portfolio that has a pretty amazing track record.
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Compiled by Gillian Livingston