A Comment -- General Comments From an Expert (A Commentary)
COMMENT
Stay at home stocks. A lot of them have come off their highs because people are at home day trading. These stocks will come back down to earth. The better trade was to buy quality stocks, sell into strength and ride it back up again. You want to buy Disney over Netflix right now for example.
Darren SissonsUnknown
COMMENT
Large sustainable companies with good cashflow that will increase their dividends are promising right now. Growing companies like Visa are also to be looked at. The dividend yield is skinny still and is growing. Nestle, for example, is gradually growing dividends and it is steady. Some of the larger dividend stocks sold off due to money flowing into growth stocks last year. Maybe it is a good opportunity. However, you cannot completely discount growth stocks either.
Darren SissonsUnknown
COMMENT
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Outlook is still positive for tech and growth stocks. However, having exposure to industrials, consumer discretionary and materials is important in today’s market. Financials will also probably do well. Unlock Premium - Try 5i Free
Stockchase InsightsUnknown
COMMENT
COMMENT
Oil. Across the commodities sector, agriculture was the first to break out, followed by forestry, and then base metal miners. If you look at the XOP ETF, we still have to break the downtrend. Bigger headwinds in energy than in other sectors. Some companies have become stronger through the difficult times, and he has some positions there.
COMMENT
Gold and silver. If you look at the GDX ETF, it's broken out of consolidation since March, led by Newmont and FNV. We've started the next leg higher in gold, and this will be significant. An asset to hold if you believe money printing is going on. This is a sector you want to own once in a while, like now. Since March, miners are outperforming the metal itself. Companies will generate significant cashflow. Silver is an industrial metal and should do well.
COMMENT
Canadian banks. Not a time to hold significant cash. Asset prices are inflating to offset global liabilities. Have to take central banks at their word that they will continue to push monetary policy and that fiscal policy will continue to push growth. Make sure you own things that will hold their value. Canadian banks have been a great place to do this. Great history of deploying capital effectively and growing dividends.
COMMENT
The reflation trade. For a while, large cap, secular stocks like NFLX were the only places for growth, as so became expensive. In a reflating economy, we have surging demand across many industries. Many companies have significant uptick in earnings growth, and are less expensive. NFLX is a long-duration asset, and less attractive with inflation. It was one of the casualties of not over-delivering enough. He's reduced his tech position significantly in favour of cyclicals.
COMMENT
Not a typical recovery? No. It's been a self-imposed recession by closing the economy. Can't be certain about the economy just roaring back, but it will be in fits and starts. It's time to be careful. Y/Y gains look deceptively good because we're coming off such extreme lows. Be thoroughly conservative in your investments. The base has broadened, but valuations are not inexpensive. Wouldn't hurt to have a fair bit of cash on hand in case of significant downdrafts, which is not out of the question. Stick to your knitting, and invest in those companies you have confidence in.
COMMENT
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. There are some bears that are foreshadowing gloomier times. However, they have missed out on some very big gains, despite being right a few times. The markets can correct at any time, but no one can really predict with certainty. Unlock Premium - Try 5i Free
Stockchase InsightsUnknown
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