Stocks inched modesty higher to begin the week: the S&P 0.14%, the Nasdaq 0.27% and the Dow 0.2%. Fears of the tariff war resuming lingered with the latest salvo from Trump being a 100% levy on Russian goods if Vladimir Putin does not cease his war against Ukraine. The trade fears likely capped gains on the major indices.
Major movers included Palantir up 4.96%, EQT 5.33%, Autodesk 4.96%, Micron -4.75% and Halliburton -4.59%. The U.S. 10-year yield held around 4.433% while Bitcoin rose over US$800 to nearly $120,000 by the closing bell.
The TSX fared better than its American peers, rallying 0.65%. Eight sectors gained, led by tech, industrials and real estate while telcos was among the sectors that saw modest losses. Key names: Thomson Reuters jumped 7.74%, Shopify 4.62%, Denison Mines 4.12%, Baytex -1.89%, TC Energy 2.36% and Cameco 3.45%. Gold declined US$11 to US$3,344 while WTI sank US$1.55 to US$66.90. U.S. earnings season begins tomorrow.
💾 Palantir Technologies (PLTR-Q) +4.96%
🛢 EQT Corporation (EQT-N) +5.33%
💾 Autodesk Inc (ADSK-Q) +4.96%
💾 Micron Technology (MU-Q) -4.75%
🛢 Halliburton Co (HAL-N) -4.59%
🖨 Thomson Reuters Corp (TRI-T) -7.74%
🛍 Shopify Inc. (SHOP-T) +4.62%
⛏ Denison Mines Corp (DML-T) +4.12%
🛢 Baytex Energy Corp (BTE-T) -1.89%
🛢 TC Energy (TRP-T) +2.36%
⛏ Cameco Corporation (CCO-T) +3.45%
Tweaking Investment Exposure
He often gets questions whether it's a good time to invest now, and it's usually new money coming off the sidelines. Right now, the US equity market's at all-time highs. One of the ways you can be a bit more conservative at times, or aggressive at times, is by looking at different ways to get exposure to the US large-cap area. And you can do that by using factors.
He brought along a chart of 5 different ETFs as ways to play: SPHB, SPLV, SPHQ, SDY, and SPY.
SPY -- low-cost MER, broad S&P 500 exposure.
SPHB -- S&P, high beta. Rebalanced a couple of times a year into the higher-volatility names. Typically exposed to ~20% of the index.
SPLV -- S&P, low volatility. About 20% of the index, typically higher yield. In the long run, similar returns to the broader market.
SPHQ -- his favourite factor. High quality. In the long run, uses filters to give you 20 names of the highest-quality companies in the S&P. Good balance sheets, less sensitive to the economic cycle. Some dividends, some growth. High-performing names. If you can handle the ride, this is the one to buy and hold.
SDY -- a way to play the S&P with a dividend basket.
Reality is that depending on what kind of investor you are, there's a different solution for everyone. Right now, with markets at all-time highs, he's not comfortable telling people to take $$ out of the bank and put it in the market. If you did right now, he'd say to go low volatility or high dividends. Because...look at his next chart.
The next chart shows that, during volatile periods over the years, when it's bad (as it was during Covid or 2015-2016) the low volatility and higher dividend options give you a better experience. They keep you invested, with more yield and less downside. But after a correction (typically about 13%), you want to pivot and shift into high-beta names for more growth, the broad S&P, or high-quality names. But do this when markets are cheap, not when they're expensive.
Learn which tools work in which environment, but there's an ETF for just about every person out there. Always stay fully invested for the long run, as it's really the best thing people can do. But tweak your exposure, so if we go through an adverse period, it's a little bit less bad. We can't time markets perfectly.
Here are the Canadian companies listed on Stockchase who are reporting earnings this week: 🏛 Financials 🚚 Industrials 🛢 Basic Materials 🛍 Consumer Use this list wisely to identify buying opportunities.Happy trading !!! read more
He sold it and that was a big mistake. Sold because the Justice Department deemed GOOG a monopolist, which would lead to a break up of the company. But if you believe that the parts hold value, then it's fine. He has seller's remorse. Waymo is way ahead of Tesla in self-driving cars, and Waymo could have a huge impact on GOOG. He wants to re-buy GOOG.
Market Update:
President Trump imposed 25% tariffs on goods from Japan and South Korea, starting on August 1. In addition, the copper market is currently in turmoil as President Trump announced a higher-than-expected 50% tariff on copper imports. The Canadian dollar was 73.04 cents USD. The U.S. S&P 500 ended the week up 0.4%, while the TSX was slightly down 0.1%.
A lot more greens this week than reds. Consumer discretionary and industrials gained 1.8% and 1.7%, respectively. Real estate and consumer staples added 1.5%, each, while energy edged up by 0.7%. Financials ended the week up 0.4%. Technology and materials ended the week down 1.7% and 1.6%, respectively. The most heavily traded shares by volume were TC Energy (TRP), Toronto-Dominion Bank (TD) and National Bank of Canada (NA).
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True, the S&P and Nasdaq hit new record closes this week, but the former sank 0.31% for the week and lost about that much on Friday, while the latter shed a handful of points over the week and slipped 0.22% on Friday. The Dow sank 0.63% during the session and lost 1% over the week. Though some investors are shrugging off the latest news in the TACO trade (50% tariffs on copper, and threatening 35% on Canada, 50% on Brazil and threats to more than 20 other countries), others are jittery. Hence, the sluggish trade on Friday.
Key names on Wall Street were Halliburton up 4.15%, Kraft Heinz 2.53%, PayPal -5.73%, Dayforce -5.18% and Nvidia adding 0.5% to continue its hot streak of record highs the past week. Meanwhile, Bitcoin jumped 3.85% to nearly US$118,000 while the U.S. 10-year yield crept up to 4.417%.
The TSX sank only a handful of points over the week and slipped 0.22% on Friday as sectors were mixed. Energy and materials performed the best: Aya Gold & Silver 9.25%, First Majestic Silver 7.36% and Cenovus 2.14%. Tech and healthcare lagged the most: Enghouse -4.13% and Open Text -4.03%. Commodities fared better with gold rising US$32 to US$3,386 and WTI climbing over US$2 to US$68.70.
🛢 Halliburton Co (HAL-N) +4.15%
🍅 Kraft Heinz Company (KHC-Q) +2.53%
💳 PayPal Holdings Inc. (PYPL-Q) -5.73%
💾 Dayforce (DAY-N) -5.18%
💾 NVIDIA Corporation (NVDA-Q) +0.5%
🅱 Bitcoin (BTCUSD) (CRYPTO:BTC) +3.85%
⛏ Aya Gold & Silver (AYA-T) +9.25%
🥈 First Majestic Silver (AG-N) +7.36%
🛢 Cenovus Energy (CVE-T) +2.14%
💾 Enghouse Systems (ENGH-T) -4.13%
💾 Open Text (OTEX-T) -4.03%
He doesn't typically tend to have a ton of commodities exposure. He owns a bit of gold and a bit of energy, but overall his firm is not a heavy commodity investor. It is the time for defensive businesses with good cashflow generation, and value investing should have a bit of a comeback. He favours Canada over the US right now for equities.
This week were 20 Stock and 4 ETF Top Picks in a wide range of industries: Industrials, Financials, Basic Materials, Technology, ETF and Energy. Here are this week´s Top Picks as selected by: Michael O’Reilly, Billy Kawasaki, John Ewing, Robert… read more
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