A Comment -- General Comments From an Expert (A Commentary)
COMMENT
US homebuilders. US homebuilders have done very well, with increased demand, housing starts and prices. Not clear how persistent the trend to move out of the cities will be. But overall, the trend to more single family homes will play well for them. If there were a pullback, he'd look at companies like TOL and LEN.
COMMENT
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Investors should be focused on companies that have strong fundamentals and quality management. Tech, healthcare, consumer cyclical and energy should have good momentum. Unlock Premium - Try 5i Free
Stockchase InsightsUnknown
COMMENT
He specializes in cannabis, small and mid-cap stocks. Of the latter, they've gone sideways or corrected a bit in the last 3 months, so he's excited about the future. He sees opportunity in growth and value as investor flip-flop on any given week. Whenever the U.S. Fed is accommodative, they lower rates and drop bank reserves. As the economy picks up, they adjust, but that hasn't happened yet. Rates remain low and the taps are still on for liquidity.
COMMENT
Rising case counts. Britain is seeing more cases with the delta variant. There is also good news that the mRNA vaccine's efficacy is still high. The bulk of those who were going to get the vaccine has gotten one. It will be an overhang for a while and it will have influence on markets and policy.
Larry Berman CFA, CMT, CTAUnknown
COMMENT
Bonds. The whole category of fixed income is now broken. Interest rates need to stay low because of debt. The safety and balance aspect is broken now. Must look at alternatives now. This will be a theme for the next 10 or 20 years.
Larry Berman CFA, CMT, CTAUnknown
COMMENT
Educational Segment. Michael Burry said that the hype and speculation around crypto and such is sucking in retail investors. When it falls, there are billions that get wiped out. We are seeing a divergence where markets are moving higher but a lot of stocks are under their 50-day moving average. The last time we saw these divergences, it was in 2007. We are in a high risk market with dislocation of what's happening. This is a cautionary sign.
Larry Berman CFA, CMT, CTAUnknown
N/A
Market. The market as a whole is not a cheap place. It is getting tougher to find value. Holding on to things that did well in the past is probably not the way to go. He is seeing value in Europe, parts of Japan and some in the US as well. Some opportunities exist in Financials, industrials, service companies that suffered during COVID and some others. He has never heard Crypto currencies explained in such a way as to make sense. It looks very speculative.
Lorne SteinbergUnknown
DON'T BUY
Las Vegas Casino Stocks – Which is Better? The whole gaming sector has had a massive run since the low over a year ago. The sector is more of a hotel and entertainment sector than a gaming sector. He only has exposure in his high yield bond fund. He avoids stocks with companies that have a fair bit of debt. MGM has the best franchises, but it is a hard sector to invest in.
COMMENT
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Generally the energy sector continues to have decent runway. Crude oil prices and general economic recovery are tailwinds. Financials, with excess capital and dividend increases likely this year, should do well as well. Unlock Premium - Try 5i Free
Stockchase InsightsUnknown
COMMENT
Market outlook. Looking back 6-9 months ago and where markets were then, there was market discounting. Confidence returned to the broader market in November with vaccine trial announcements. We can see the results of vaccination campaigns in economic recovery and case counts. Looking forward, there needs to be caution as much of the recovery expectations are priced in.
Ryan BushellUnknown
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