Don’t look now, but the volatility we thought was behind us along with 2021 is still around in 2022. Here are the stocks to watch this first weekend of 2022, and what it means for your portfolio.
Your old BlackBerry device is finally, really, dead. Right?
The one-time king of the smartphone, BlackBerry (TSX: BB)(NYSE: BB) closed a big chapter in its storied history this week. The tech company made good on its word to finally cut the cord on all of the incarnations of its operating systems. This includes BBOS (think legacy small screen devices), BB10 (the QNX-based successor), and the ill-fated PlayBook OS (again, based on QNX).
As of this past week, all devices running those operating systems hit end of life. This means that the devices will no longer work for making and receiving calls or texts.
It seems fitting as BlackBerry itself hasn’t released its own device in nearly seven years. BlackBerry hasn’t seen a partner-developed, BlackBerry-branded device released in a few years either.
The company has since moved on to focus on its growing cybersecurity business, which makes BlackBerry one of the stocks to watch closely in 2022.
Is this company going nuclear?
When it comes to long-term volatility, few companies can attest to such a storied past as Cameco (TSX: CCO)(NYSE: CCJ). Cameco is one of the largest uranium miners on the planet, selling its uranium to nuclear reactor operators around the globe.
Following the Fukushima disaster back in 2011, demand for nuclear power, and, by extension, uranium disappeared overnight. This led uranium prices to crash to the mid-US$20-per-pound range from nearly US$60 per pound.
Over the past year, uranium prices have been rising. This has led to a slow and steady rally on the stock. After the events of this week, however, slow and steady can be tossed out.
I mentioned before that Cameco is one of the largest uranium miners. The largest uranium miner is located in Kazakhstan. Starting with the new year, Kazakhstan removed price controls on liquefied petroleum. This led to an immediate 100% increase in fuel prices and, in turn, violent protests.
Those protests have resulted in uranium prices soaring, which took Cameco along for the ride.
Fortunately, that surge appears to be short term. Investors can expect Cameco’s stock price, which, at one point, surged nearly 20% over its 2021 position to return from the stratosphere. Cameco is definitely one of the stocks to watch, but probably not one you want to buy, at least right now.
Homes are (just maybe) getting more expensive
Don’t look now, but Canada’s white-hot real estate market is not cooling down. The average price of a home in major metro areas is now well over $1 million. Efforts to cool the market have yet to show promise. That includes proposals to ban foreign buyers, make improvements to the mortgage-qualification process, and even launch a tax-free home savings account.
One new suggestion from the Canada Mortgage Housing Corporation this week calls for imposing a capital gains tax on homes priced over $1 million. The proposal is intended to serve as a tax on the top 10% of homes. Unfortunately, at current levels, that includes all of Vancouver and Toronto.
Investors seeking an income property can instead opt to invest in RioCan Real Estate (TSX: REI.UN). RioCan is one of the largest REITs in Canada. The company is focused on commercial retail but, in recent years, has shifted to mixed-use residential.
Just like a landlord, RioCan provides a monthly income, which currently works out to an appetizing 4.24%. Even better, unlike a traditional landlord, RioCan investors need not worry about tenants or maintenance.
Stocks to watch: Are they on your list?
There are two core rules I use when it comes to investing. First, every stock carries some risk. This applies even to the most defensive stocks that we sometimes dismiss as safe.
The second point is not to buy on emotion. BlackBerry and, to a lesser extent, Cameco fall into this category. Neither is a particularly great option right now. RioCan, however, represents a unique opportunity for investors to earn some income and realize long-term growth.
