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

That is one mindset. There's nothing wrong with it, but that's not how they're wired at Goodreid. There are a lot of different ways to make money. Then you just have to be disciplined and stick to it. 

When looking at technical indicators, he's looking at things like overbought/oversold levels. Overbought is bad, as you expect that money to purchase stocks is running out and there's going to be a sell cycle. 

Put/call ratios, breadth indicators are all positive because the markets have been doing very well. But we're getting above historical norms, which means we're ready for a downward cycle. Volatility is very low. When the indicators get beyond their norm, either at a high point or a low point for that specific indicator, expect the market to reverse.

He expects widening breadth, so small- and mid-caps will start soaking up some of the sunshine that large caps have enjoyed, rotation out of bigger caps.

Yes, but fundamentals have to drive these things. Look at NVDA, where the stock was doing very well and earnings propelled it even further. That wasn't an index move, it was a fundamental aspect of the company. The money coming in will give you some support, but you still need the fundamental story. Stocks can still go down even after they've been in the top 10-20 of the S&P 500.

Typically around 10% below the current stock price. You may want to overlay the 50-day moving average, and use that as an exit strategy as well.

A yield of 4-6% indicates quality. If you find a yield of 15% or more, you probably don't want to touch it. There's something wrong with the pricing and future dividends are questionable.

Typically 4-6% is what the banks offer, and those are good quality, blue chip, buy-and-hold stocks. Utilities like Telus and BCE are in the same category. Some issues with debt in all these companies, and that's a problem in a high-interest environment.

Buying on Market Fears:

Being a contrarian in investing can be tough, and the difficult part is it is never quite clear if being a contrarian about a stock is right or wrong, until enough time has passed. I find that the more worried and concerned I am about buying a stock, typically, the better the decision it has been to buy. It is when I am excited about buying a stock, or the decision seems too easy or comfortable, that I have to second guess myself. The reasons to this are fairly logical, when a good, high-quality stock has dropped by a lot, it can be nerve-wracking to buy at that point, as many thoughts may be going through one’s head – ‘did I miss something’, ‘is there more downside left’, ‘has the narrative changed’. But, usually in hindsight it has been a good buying opportunity, and it is important to battle through the emotions following a large price decline, and ‘buy the fear’.  
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There's a good chance that the Fed won't cut rates until 2025, given that the US unemployment rate is 3.7% and GDP is rising. Housing markets remain good. Long-term bond rates are too low; you're not getting real returns to justify holding a 10-year bond. He used to recommend corporate bonds 100%, but recently has been adding government bonds given the tight spreads in corporate. Also has been adding floating rate bonds where rates are well over 5%. Investment-grade and junk bonds are extremely tight, near historic spreads. Due to compounding, high-yield bonds are outperforming everything.

Doesn't like preferreds; they lack the growth of equities, are volatile and lackthe safety of bonds, though you get the after-tax yield. Bonds are the better option--you know what return you will get.

No. The investor doesn't get a good deal while the underwriting collects a profit. Find one yourself, a 1-year maturity that pays a better yield. Better to buy-short liquid notes with your US cash.

He definitely prefers dividends, the bigger the better.

Each are A-rated bonds. Very flexible.

Govt of Canada 0.5% bond, December 12030. 

It's in the sweet spot of the curve and offers a good 4.3% yield, relatively. Only 3 years to maturity, good risk/reward.

Don't buy preferred shares without resets.

TPO PICK: LYZ801F: It holds corporate-value funds. A good performer with a track record.