Summer Sale
50% off Premium Yearly
00days
00hrs
00mins
00secs
A Comment -- General Comments From an Expert (A Commentary)
COMMENT
Outlook for 2022. Challenging. Volatility is a sign of things to come. After the huge bounce in markets, headwinds arise with stimulus withdrawal, interest rate hikes, and geopolitical tensions. It will depend how the economy performs. Investors are wise to tighten their portfolio exposures. He's comfortable with his positioning in defensive, essential needs providers, with infrastructure being the key base in his portfolios.
COMMENT
Canadian banks. He usually prefers whichever is cheapest. Roughly same fundamental backdrop, same set of opportunities. TD is his largest position, as he likes its mix of businesses and management. Prices are not as attractive as they were. Yes, rate increases are good for business. But if their huge wealth management businesses have a tough year, that will have a negative effect. How much will rising rates affect the volume of lending? It's not just how much you make on the spread, it's how much volume you do, and this may be poised to slow down. Had a nice run, in the middle of their valuations. Not in a rush to buy. For clients who have no exposure, he's scaling in by, say, a third of a position. His biggest positions are in TD and RY, followed by BNS and CM.
COMMENT
These days, it's easy to trigger panic selling. Don't blame US Fed Chair Powell, who is smarter than you think. Critics want Powell to be imprudent and jack up rates. In contrast, the doves want Powell to continue to be accommodative. Sellers this afternoon are afraid the Fed won't sell its bonds fast enough. Powell didn't do anything that surprising. Forget the bulls and bears, but stick to companies that make money and aren't speculative, selling real things and services. Since earnings season began, we've seen beats from AmEx, MSFT, JNJ, 3M, Wells Fargo, P&G and others. Disappointments came from Netflix, JPMand Boeing for instance, overall fewer than the beats.
COMMENT
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Investors are worried about multiple risks: geopolitical, inflation, interest rates and labour. Much of the selling is based on this fear. The market decline has created more fear. However, every trade has a buyer. Economic connections are still good, and the sell off will end at some point. Unlock Premium - Try 5i Free
Stockchase InsightsUnknown
COMMENT
It's been exciting, not fun. It's hard to call a bottom when markets are this volatile. There's a lot of uncertainty about the Fed, Russia/Ukraine and Covid. It feels like a market top for the lower-quality, speculative names. Today, we're starting to see discrimination between high-value, dividend payers and low-quality tech. Yesterday, everything was going down, but today the focus is on the latter....Cryptos are not an investment at all; they are at best a trading vehicle. Just because supply is constrained doesn't mean anything; elephant dung is intrinsically constrained and what is that worth?
COMMENT
Educational Segment. There is an indicator that is showing an opportunity. Valuations are still high, but business cycle is positive. Credit conditions and yield curve is positive. The indicators are showing some negative indications, like seasonality. However, there are many indicators point to over sold territory. There is opportunity right now. It will probably be choppy for a few months however.
Larry Berman CFA, CMT, CTAUnknown
COMMENT
COMMENT
S&P500 Have come off highs and seeing a decline led by large cap tech. Meme stocks and high valuation stocks are seeing a big hit. Could last several more quarters. A lot will depend on what the Fed does on policy. Seems clear there will be not much more fiscal support. There will be some spending though.
Larry Berman CFA, CMT, CTAUnknown
COMMENT
10-year yields rising. The principle of risk off is that money does go into bonds. However, if the market is going down because of inflation and rates, then it is more important wha the Feds are going to do. There are 6-7 rate hikes already priced in. If the Feds aren't able to do that much due to financial conditions, then the markets are over priced. Equity markets will be more volatile over the first half of the year until we get a better idea of inflation rates. If it falls, then the Feds won't have to raise as much.
Larry Berman CFA, CMT, CTAUnknown
COMMENT
Overvalued stocks are the ones you want to look at liquidating. Companies at decent multiples should be alright, like Apple. Over priced tech companies with no revenues would be what he would be worried about.
Larry Berman CFA, CMT, CTAUnknown
COMMENT
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Profit margins have been increasing and growth for the S&P500 has been high. Cost inflation could lead to slower profit gains this year. Rising rates may slow the economy. If inflation slows, then the hard hit stocks will recover. The rate changes have most likely been priced in. So long as corporate profits grow, the correction should come to an end. Unlock Premium - Try 5i Free
Stockchase InsightsUnknown
COMMENT
Markets got ahead of themselves with some valuations a bit extreme (major sell-off day). It's painful but healthy for markets to be doing this. Valuations now getting more reasonable. This is all against a backdrop of rising interest rates, Russia/Ukraine, momentum driven market. New money is coming into the passive side of ETF's rather than stock picking. This cycle will change at some point. The market may be nearing the bottom. Shopify could be an example of what is happening. Before it pulled the broad index up, now it is pulling it down and is valued pre-pandemic. It is still a good stock and the shorts will eventually cover allowing it to rise again.
'%20fill='%23ffffff'%3e%3cg%20id='Pager'%20transform='translate(423.000000,%201755.000000)'%3e%3cpath%20d='M243.295367,17.286474%20C243.68919,16.9045087%20244.327703,16.9045087%20244.721525,17.286474%20L249,21.4361302%20L253.278475,17.286474%20C253.672297,16.9045087%20254.31081,16.9045087%20254.704633,17.286474%20C255.098456,17.6684393%20255.098456,18.2877274%20254.704633,18.6696927%20L249.35654,23.856763%20C249.159628,24.0477457%20248.840372,24.0477457%20248.64346,23.856763%20L243.295367,18.6696927%20C242.901544,18.2877274%20242.901544,17.6684393%20243.295367,17.286474%20Z'%20id='Path'%20transform='translate(249.000000,%2020.500000)%20scale(-1,%201)%20rotate(-90.000000)%20translate(-249.000000,%20-20.500000)%20'%3e%3c/path%3e%3c/g%3e%3c/g%3e%3c/g%3e%3c/svg%3e)
'%20fill='%23ffffff'%3e%3cg%20id='Pager'%20transform='translate(423.000000,%201755.000000)'%3e%3cpath%20d='M243.295367,17.286474%20C243.68919,16.9045087%20244.327703,16.9045087%20244.721525,17.286474%20L249,21.4361302%20L253.278475,17.286474%20C253.672297,16.9045087%20254.31081,16.9045087%20254.704633,17.286474%20C255.098456,17.6684393%20255.098456,18.2877274%20254.704633,18.6696927%20L249.35654,23.856763%20C249.159628,24.0477457%20248.840372,24.0477457%20248.64346,23.856763%20L243.295367,18.6696927%20C242.901544,18.2877274%20242.901544,17.6684393%20243.295367,17.286474%20Z'%20id='Path'%20transform='translate(249.000000,%2020.500000)%20rotate(-90.000000)%20translate(-249.000000,%20-20.500000)%20'%3e%3c/path%3e%3c/g%3e%3c/g%3e%3c/g%3e%3c/svg%3e)
