Opinions
Kim Bolton
iShares North American Tech-Software ETF
IGV-A
BUY
Jul 22, 2019
$226.090
Stock price when the opinion was issued
Technology
It's the ideal tool to help you make quicker, more informed decisions for
managing and tracking your investments.
You might be interested:
TOP PICK
July 31-Nov.8 is seasonality. It's outperformed the market by 4.2% in this period. It's trending higher and consistently. Software stocks are the new defensive stocks because they're adopting the subscription model, like Microsoft.
Technology
COMMENT
How to take advantage of a recession? There has been a great run in the market. He would buy into an alternative offering that allows the manager to be long or short or to get an active manager. You need to be disciplined on your entry and exit levels. His minimum to get into his fund is $50k. He could suggest two ETFs: IGV-T and FTN-N. He thinks it is dangerous to get into a long only ETF at this stage of the cycle.
Technology
HOLD
A great name. He likes their migration to a subscription basis. It has good pricing power and he personally uses their products all the time. They are the defacto standard. A little rich at today's value though. He would also consider the ETF IGV-A to help diversify some of the risk in the space.
Technology
PAST TOP PICK
(A Top Pick Jul 31/19, Down 5%) All the growth names have pulled back. Software stocks tend to be more defensive, so you can hold them during periods of stock weakness. Software is your new defensive play during the summer. July-November still has some seasonal runway, but the chart shows a head and shoulders pattern, so technically the trend is over.
Technology
A tech ETF for an RRSP? There are three. SOXX for semi-conductors, the ammunition which drives tech around the world. IGV is a great way to get diversification in software. FDN is the internet index is extremely liquid and massive. These ETFs cover the three pillars that drive tech today. He uses these ETFs to offset volatility. When an ETF approach 5-7% of his price target, he sells a third off. Holding single stocks isn't as nimble. For example, he sold a lot of these ETFs in early-spring, then bought them back in the May swoon.