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Compiling comments that experts make about stocks while on public TV.


General Comment by Stan Wong

Bias Subject Owned

Market.Investor sentiment has turned very positive, driven by the fact of increasing breadth in the global economic expansion, and expectations of sustained corporate earnings growth. We have a Goldilocks backdrop of improving global economic growth and modest inflation, which should allow all central banks to increase interest rates on a more gradual pace, rather than too quickly. Technically, we are overbought at this level, when you look at the RSI. A pause may be in order or some sort of consolidation. Volatility can flare up a little, whether it be from further fighting between the US and North Korea, or geopolitical strife in Washington. Given that we are moving into a very, very strong part of the season and seeing optimism surrounding potential tax reform, buying on dips and taking advantage of any consolidation makes a lot of sense. You want to be in the cyclicals. Financials are close to 30%, technology around 20%, and 22% for consumer discretionary. Those are the plays that will tend to move better in an economically sensitive environment. Has no exposure to utilities, real estate or telecom, although does have a little in consumer staples. He favours the high-quality companies. With interest rates moving higher, you want companies that are a little bit less leveraged. You don’t want to be at 30% cash in this environment. He likes both the international and EM markets, whether it be Europe, Asia or EM.

Stan Wong
Director & Portfolio Manager, Private Wealth Management, ScotiaMcleod

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