Among the many investing ideas you'll hear from the pros this month as they set their psychic powers on 2017 is this intriguing thought from Goldman Sachs: Return dispersion is set to rise.

By that, they mean that the returns for stocks in the S&P 500 – they use three-month returns – are set to diverge more than they have in recent years, and that should deliver an opportunity for nimble stock pickers to distinguish themselves.

As the strategists put it: "Return dispersion, a measure of the alpha opportunity available to active investors, has risen from record lows in 2014 but remains below average. Skillful active managers will benefit from greater policy uncertainty and a tightening labour market in the 8th year of an economic expansion that should drive a continued increase in return dispersion."

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Trouble is, as the gaps widen between outperforming and underperforming stocks, some investors – perhaps many investors -- are going to be left behind with bets that didn't work out. Perhaps Goldman Sachs will be right with its prediction, but the best approach for most investors is to forget about chasing this allusive alpha and pursue some gold old beta. Index funds work just fine.

-- David Berman

Stocks to ponder

Lundin Mining Corp. This copper stock is starting to offer a dividend with a 1.7-per-cent yield, writes Jennifer Dowty. The stock appears on the positive breakouts list, and given the strong rally in the stock price, a pullback in the share price appears in order. Lundin is a diversified base metals mining company focused on copper, nickel, and zinc production from its operations in Chile, the U.S., Portugal, and Sweden. The average one-year target price is $7.59, implying the share price may appreciate 7 per cent over the next 12 months. However, target prices vary widely.

Clearwater Seafoods Inc. The shares recently displayed a "death cross," writes Jennifer Dowty. A "death cross" is a potentially bearish signal for a stock that occurs when a shorter-term moving average, such as the 50-day moving average, crosses below a longer-term moving average, like the 200-day moving average. When this occurs, it marks a potential negative signal confirming the downtrend in the price action may have traction. With respect to Clearwater, last month the share price plunged 12 per cent on high volume the day after the company reported disappointing third-quarter financial results. From a fundamental perspective, analysts are forecasting quite the recovery in the share price over the next year. There are four unanimous "buy" recommendations. The one-year target price is $16.13, suggesting the share price may appreciate over 37 per cent.

Secure Energy Services Inc. This stock has with 11 'buy' calls by analysts, a 2.4-per-cent yield, and it has never cut its dividend even when it faced tough times, writes Jennifer Dowty. Calgary-based Secure Energy Services is an oilfield services company and management is encouraged by the rebound in oil prices and what that will mean to its business in the months ahead. The average one-year target price is $11.67, implying the share price may appreciate 15 per cent over the next 12 months. Year-to-date, the share price is up 21 per cent.

The Rundown

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How one man turned the oil crash into a $1.2-billion win

As with many great investments, one of the best bond trades in recent Canadian history emerged through a haze of fear, writes Tim Shufelt. As the worst crude oil bust in decades was unfolding, reams of high-yield Canadian oil and gas bonds sank to distressed prices as the market began to expect a wave of bankruptcies. Few at the time saw the sell-off as a rare and extraordinary opportunity, and most that did were unable to capitalize. But Hanif Mamdani, head of alternative investments for RBC Global Asset Management, did. He and his team scooped up more than $2-billion worth of higher-quality issues discounted by as much as 40 per cent from face value. Now, with the Canadian oil patch having rallied after a painful restructuring, and with industry deal-making on the rise, those bets are being richly rewarded."Coming up on 30 years in this business, this was by far the most profitable trade I've seen," Mr. Mamdani said, pegging his gains at $1.2-billion and counting.

Why this portfolio manager is buying U.S. financials and Canadian lifecos

Andrea Horan believes there's only one direction for interest rates to go in the long-term, which is up. The Globe and Mail recently spoke to Ms. Horan, a portfolio manager at Toronto-based Agilith Capital Inc., about some of the winners and losers in a rising-rate environment, including her own picks. She also spoke about why her firm doesn't invest in resources and the one stock that got away.

Three compelling reasons to stay invested in Canadian bank stocks

Canadian bank stocks hit record highs last week after five of the biggest banks reported upbeat fourth-quarter profits and announced a couple of dividend hikes. Now what? While it is tempting to shy away from a sector that has surged 20 per cent this year, there are three compelling reasons to stay put, writes David Berman.

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It's too soon to celebrate an energy rebound

Finally, some good news for the energy sector! OPEC got its act together and agreed on production cuts starting in January and the federal government gave its blessing to the twinning of Kinder Morgan's Trans Mountain pipeline to Vancouver, writes Gordon Pape. Oil prices shot up, share prices of Canadian oil and gas companies jumped and Albertans cheered. Even the loonie gained ground. While Mr. Pape says he doesn't want to play the role of the Grinch here, he thinks all the celebration was a tad premature. He expects there may be some disappointments in the months ahead.

Amaya's true earnings should be a further warning sign for investors

There are many reasons why one might consider taking a pass on the stock of Amaya Inc., the online gambling company, writes David Milstead. Choose from: the insider-trading charges against its former chief executive officer David Baazov, or a host of other legal squabbles. Or, an offer from Mr. Baazov to take the company private, which when introduced, appears to have included purported financial backers with little to no knowledge of their role in the transaction. Or perhaps simply the pressures on the company's core online-poker business, which may suffer if casual players step away from the game. All of these red flags are relatively easy to understand. More complex, but no less compelling, is the company's problematic financial reporting. Amaya – which was unable to respond to my questions, submitted late last week – emphasizes an adjusted profit measure that leaves out all sorts of expenses that impact the company's cash flow. Indeed, while the company reported a 2015 profit gain, Amaya's earnings instead declined, if these costs are included.

The ideal way for investors to balance advice and low fees

ETFs for oldies? That was the question a West Coast couple asked Rob Carrick in a recent e-mail. They have been trying to hammer down the investing/advice fees they pay and wondered if exchange-traded funds would be a suitable replacement for their mutual funds. The answer is yes, for sure, absolutely. In fact, ETFs are an ideal way to connect investors with both advice and low costs.

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Where high-net-worth investors are putting their money

Looking back at the past quarter, there was continued uncertainty heading into a highly contentious U.S. election. Unsurprisingly, this mixed environment caused many high-net-worth investors to maintain a more cautious, defensive stance with their portfolios, according to a new Tiger 21 survey. Perhaps more of a surprise, however, is a "Buy American" trend in real estate, writes Thane Stenner.

Bill Gross on markets, Trump and his new Canadian fund

Legendary bond fund manager Bill Gross says the recent Trump-fuelled rally in U.S. equities has gone too far and suggests that investors take a breather, writes Christina Pellegrini. Stocks have soared since Donald Trump was elected U.S. president, with the major American indexes reaching record highs on Black Friday before ending last week close to flat. Traders rushed to reprice stocks for higher outlooks for inflation, the U.S. dollar and economic growth, outcomes which are widely expected if the incoming administration begins to fulfill Mr. Trump's campaign promises. But Mr. Gross, who joined Denver-based money manager Janus Capital Group Inc. two years ago, insists those campaign promises for growth are too good to be true and says now is a good time for equity investors to take some profits and hold a little more cash in their portfolios.

Post-election rally in U.S. equities is just getting started: RBC

The so-called "Trump trade" is just getting started, according to RBC Dominion Securities' chief market strategist. The post-election rally in U.S. equities reflects a shift in growth and inflation expectations that is poised to continue through next year, Jonathan Golub said in a new report. As a result of this "new investment regime," Mr. Golub foresees a strong year ahead in U.S. stocks, and has set a bullish year-end target of 2,500 for the S&P 500 index. That would represent a gain of 14 per cent from current prices.

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Amid all the financial turmoil, why are gold prices getting crushed?

Gold, the traditional haven from financial turmoil, is now being crushed by a market for which it seems ideally suited, writes Ian McGugan. Over the past month, a triple helping of chaos – including Donald Trump's election in the United States, Indian currency reform and an Italian referendum – has surprised investors in three large economies. Yet gold has only sunk lower and lower. Instead of seeking shelter from uncertainty, investors have chosen to place their bets on renewed prospects for economic growth.

How a simple coin-toss game can make you a better investor

Are you ready to take the coin toss investing challenge? asks Ian McGugan. Think you can beat the system when you know that there's a 60-per-cent chance that the coin with show heads? Go to coinflipbet.herokuapp.com/ and start flipping and see if you can beat the odds and stay on track to win the big bucks. Betcha you can't.

A 'growth GIC'? Take a pass

Products such as the BMO Growth GIC are seductive because they appeal to our desire for gains while assuaging our fear of losses, writes John Heinzl. What's not to like about potentially making a double-digit return and never having to worry about losing a penny? Let's dig into the details of this product and you'll see why it might not be such a good deal after all.

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An engineer's retirement portfolio

William Wood is a retired engineer and avid investor. His retirement portfolio is focused on solid, entrenched companies that pay lucrative dividends, writes Larry MacDonald.

Number Crunchers

Ten TSX stocks with strong revenue growth – trading at a discount

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What's up in the days ahead

David Rosenberg is going to tell us why this stock market rally (and bond market drubbing) is getting ahead of itself in the wake of the Trump win. David Berman will offer up another soothing view for bank investors. And John Heinzl will tell us why he's far from giving up on dividend investing despite a wicked month for his Strategy Lab portfolio.

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Compiled by Gillian Livingston