A Comment -- General Comments From an Expert (A Commentary)

COMMENT
Please note. A Top Pick of Mike Newton's yesterday, Magna International (MGA-N) had an incorrect symbol MGA-T so e-mails sent out in last night's mail were incorrect. My apologies to Mike. Also my thanks to Infojoe for drawing this to my attention. Bill
COMMENT
Natural Gas. 2 types, wet and dry. Dry is without associated liquids and wet will include propane, butane or ethane, which are priced off of oil and help offset natural gas prices.
COMMENT
Stop Losses. These are always very controversial. He doesn’t place Stop/Losses into the market but holds them out to the side. If you have a line in the sand on which you want to get out, have your own reminder. You can always get back in.
DON'T BUY
Uranium has finally has some pretty sharp movement. Ontario’s new statement on energy policy going forward has to bode well on uranium in the long term. There is such a long lead time on having facilities built it could be 10 years before there is a plant up and running.
BUY
Cdn Bank Preferred Shares? Looking very attractive. You can find a lot of bank preferreds with yields between 5.5% and 6% and relatively safe. Would be cautious on some of the more recent issues such as Step-Ups.
COMMENT
5 year GIC Versus 5 year Canada Bond? GIC should yield more. If you are a Buy and Hold investor and investing less than $100,000, GIC is a slam-dunk. More active investors should look at the Canada’s that are more easily traded.
COMMENT
Yield Curve. Looking at this today, 5-year area is a little bit expensive and 2-year and 10-year probably offer more value. That is the government curve. In corporates you get more value and the curve gets very steep in the 5 to 10 year area, which is what he would recommend.
COMMENT
5-year laddered or 5-year laddered government/provincial bond ETF? A little more yield on GICs but you give that up on liquidity. He would recommend you use both and build your own ladder.
N/A
[Today’s show also includes technical analysis.] This is a very significant bull market. All the things that push a bull market forward are in place. The current debt problems are a sovereign problem. The private sector has corrected its problems, but the public sector has not. He would not own government bonds right now. That’s where the bubble is.
SELL

Gold: On 1 year there is a head and shoulders emerging. Gold could use a bit of a break. Suggests sell and wait for it to go back down.

COMMENT
He does not look at market capitalization. He just wants to see momentum.
COMMENT

Stop Losses: He doesn’t use stop orders. You can get stopped out on a sudden, quick, short drop. He wants to see if the stock breaks various moving averages and trend lines.

COMMENT

Canadian Banks: The earnings do not look good to him. Earnings growth is flat. Will most likely to continue to be very anemic.

COMMENT

Canadian Trusts: He owns a lot in his fund because even when they become taxable, they still offer some of the highest yields in the world. Will go higher as long as FED keeps interest rates low.

COMMENT
Stocks have been lagging the commodities. Juniors are lagging large caps. If the larger stocks deliver the earnings, they will go up. They might well under perform the commodities because they did last time.
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