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

Outlook for industrial REITs. The Blackstone takeover of WPT.UN this year shows big bids for high-producing real estate. So he remains bullish on the sector. Anywhere where you can reduce the last mile to make it more efficient, you'll find industrial warehouses.

US housing sector. Seasonal sector, but some of those factors are not occurring. Traffic is up. People are looking to buy before mortgages or rents go higher, resulting in very low inventories. If volume is at or above this year's levels in 2022, stocks look cheap. If volumes tick up, could be lots of upside again.

Educational Segment. Year to date, almost $900B in new equity money has flown into ETFs and long-only equity funds. This surpasses the cumulative total of the last 19 years combined. Usually, the behaviour is very cyclical. When markets are doing well, money runs into them. After, they underperform. The rapid upswing in performance, looking at annual returns, could lead to weaker returns in the near future. The government has given money to people and this has flown into equity markets. This should add more volatility to markets in the next 3-4 months until we get more clarity about the variant. The money coming in is massive, and the question is how sticky it is.

Hedge against inflation. Inflation index bonds is the best way. However, for most people, not having any fixed income in a rising interest rate environment for most investors. Gold and gold equities should be protective too but in the last year, this has not panned out. Gold and gold equities are the cheapest asset classes. Market place views inflation as transitory. Likes silver more for its application in greening of the world now.

Covid variant. Have seen some recovery but not broad based. We saw tech recover. There will be a big noise factor until we get more clarity on the variant. Markets should not like uncertainty. For the next couple weeks, should not be a buyer here. From a technical perspective, the price action from last week was damaging and there were reversal patterns. Need to test support levels of September lows and 200 MA before markets can rebound.

Debt ceiling. Suspects a new resolution on the budget and they will probably kick it down the road. Clear that it is difficult to pass new infrastructure and stimulus. This adds to the noise for the next few weeks and is not positive.

Those who panicked and sold Friday were ruled by fear, not rationality. Biden ruled out a return to lockdowns, and markets rose. It's likely that an Omicron variant case will occur on American soil, and markets will sell-off again, but do not panic! Remember that technology developed a Covid vaccine in record time; what once took months and years, now takes weeks. Also, there's no wider systemic risk in the current market. Panic is not a strategy. Besides, we've seen this movie before (the Delta variant).

The market was looking for an excuse to sell off. There has also been an underlying shift from growth to value happening. Hedge funds with over exposure to growth are now hurting and are now de-risking. The new variant is a cause of concern, but also we will need to live with them now. A healthy sell off to get off some fluff.

People who have had good profits with concerns about inflation and interest rate concerns did not cause a huge sell off. This has now realized and markets are de-risking.

Energy stocks, forestry, and resources companies are cash flowing. The pull back is not the end of the energy run.

Most exciting factor in tech right now? Barometer for tech is the semiconductor sector (foundaries, manufacturers, designers), the engine of the market. It used to be the transport index, but now it's the semis.

Long-term period of semi shortages? The sector is so massive, it takes a long time to change the direction of the ship. Pricing of stocks goes out between 6-12 months. Market's telling you that you'll have balance in the second half of 2022.

Demand for semis won't be coming down in future. True, but that's why they're building up the supply side. For example, Samsung is building an $18B factory in Texas. Demand is outstripping supply now, but fast forward a year or two and it's going to be the other side of the coin, with massive supply.