UnlockRatingThe vaccination Gamestop dichotomy: 93% of the workforce is still employed, and are paying down debt with little to spend on--so these people may be doing just fine. Also consider that super low interest rates make house-buying affordable, especially in the suburbs. That's why homebuilding stocks are booming. It's fair to worry about the slowness of the vaccine roll-out, but he doesn't seem more lockdowns, because governments can't afford them. Rates will stay low and consumers have lots of money that they'll spend when things reopen. Groups in reddit are targeting shorted stocks, like they are doing with Gamestop. Same with Bed Bath and Beyond, also squeezed. Some stocks they target are genuinely undervalued like Blackberry. That said, this is a sideshow, but it won't threaten the overall market.
UnlockRatingBilly Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. P/E is quite high right now for many companies and indices but it is to be expected with ultra-low interest rates and alternatives paying almost nothing. If there is a big growth rebound out of the pandemic, valuation can increase sharply. A great company will grow into its valuation. Unlock Premium - Try 5i Free
UnlockRatingMarket. He is watching BB-T very carefully which is a large position for him. He sold his entire position today. The only explanation for the climb he can see is a short squeeze. Some insiders sold some stock last week. He thinks there are momentum, computer driven strategies that were at play this week. His approach to the market right now is that it is a stock picker's market right now. He is a value investor and was careful about portfolio construction. He has not made many changes to his portfolio other than trimming and is now sitting on about 12% cash.
UnlockRatingEducational Segment. Credit market risk. There is a gross mispricing of credit market risk. Due to implied fiscal and monetary stimulus, the weaker companies who would not be able to make interest payments are able to get money with a tight credit spread. We see a deterioration in credit spreads before the stock markets turn down. There is a divergence where the stock market makes new highs, but there is less tightness in the credit market. We are starting to see this. It is not signalling a sell yet, but it is cautionary.
Canadian National R.R., Metro Inc and More Earnings Reports this Week (Jan 25-29)
The markets closed last week with a modest appreciation. Further lockdown measures, challenges to vaccine distribution and hiccups in stimulus have been headwinds for the markets. This week, the Canadian rails Canadian National R.R. (CNR-T) and Canadian Pacific Rail (CP-T)… read more
