A Comment -- General Comments From an Expert (A Commentary)
COMMENT
US ETF with a good yield for a new investor? You won't find good yield in the US banks, as they're about 1.75%. Try XLF, as it's done well and he'd be buying. If you want to be in USD, this is the place to be. Try ZWK, which is Canadian-listed but deals with the US as a covered call, yield is around 5%. There's also a USD version.
DON'T BUY
Inexpensive way to play Bitcoin? One ETF is from Purpose Investments, and the other one is from Evolve. He doesn't recommend them. At lot of things about the transactions are uncertain. The US SEC has rejected Bitcoin. The one advantage in Canada is that we deal with spot, or current, prices. Whereas in the US, you can buy it on the futures market, which makes absolutely no sense.
COMMENT
Chinese ETF exposed to all stocks, low MER and turnaround ratio? There are a number of providers, but the one with the greatest following seems to be KraneShares. They have numerous ones, so you're sure to find one that's satisfactory. The MER will be at least 85 bps, since it's always higher when it's foreign. Not sure about the turnaround ratio.
COMMENT
Proxy for a bond ETF in an RRSP? Once you get liquidity issues, ie. no buyers, the price of bonds can drop really fast. So he sold his long bond ETFs. Instead, he bought ZEB as a bond substitute, which holds all 6 Canadian banks. Its MER used to be too high for him, but they recently chopped it to 25 bps, so he bought. But see his Top Picks for a bond ETF.
COMMENT
COMMENT
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. With a long term holding period, a focus on buying high-growth tech stocks on a potential downturn is a good strategy. If you have a short-term defensive investment focus, then financial stocks or consumer cyclical could be preferable. Unlock Premium - Try 5i Free
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COMMENT
The big picture is the sway that options trading has over this market. The 2 days, day before and day of options expiration sees jarring market moves. It happens every week during this earning season. Company fundamentals aren't important in comparison. That's why we're not out of this bear market yet. A stock can fall 30% or 50% from its peak, but nothing fundamental has changed with the company or stock.
COMMENT
If Russia invades Ukraine, what's the impact on markets? Stocks fell 3% after Pearl Harbour but recovered all that in one month. Historically, stocks rally within a week or so in conflicts that the US had direct involvement. In 2014, there was a volatility spike in the Russia-Crimea conflict. If Russia invades Ukraine, it won't be a fun day, but the market will digest it. History shows that the market reacts in a mixed way and it's not necessarily negative.
COMMENT
What could happen this long weekend to impact Tuesday's trade? She's most concerned with two periods. The next six weeks see ongoing inflation and Fed concerns, the reset of high valuation stocks and Russian military conflict against Ukraine. 12 months out: nobody cares about that now, just the present. Bonds didn't protect stocks in January and cash doesn't help against inflation. She has a balance between cyclicals and high-growth tech, as well as an interest in international stocks. The second half of 2022 will be much different (better) from 2022 to-date.
COMMENT
COMMENT
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. A downtick in inflation numbers would set off a powerful rally in growth stocks. When investors see inflation as having peaked. A solution in Ukraine would also help. If there is a recession, this will also help growth stocks since it would be more valuable in a slow-growth world. Unlock Premium - Try 5i Free
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