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

2017-10-12

General Comment by Stan Wong

Bias Subject Owned
OPTIMISTIC NORTH AMERICAN - LARGE & ETFs _N/A

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 http://www.stanwong.com

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