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

COMMENT
Electric battery companies. A complicated area. There are EVs, battery companies, the supply chain behind all that, and the whole charging side which is very interesting. Best to do some research. His analysts have just completed some.
COMMENT

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Although there’s been a couple weak days, this does not make a trend. Concerns over interest rates has caused some short term volatility but markets tend to rise when rates rise. Afterall, it means economic growth. The correction is healthy and there are positive indicators. Unlock Premium - Try 5i Free

COMMENT
To young people, there's a better way to manage your money, instead of being hooked on the Reddit/Robinhood squeeze trade. He's talking about the GameStop surge at the end of today. This isn't a team sport. This squeeze is highly risky. Instead, try long-term investing through fractional shares in Lam Research, Netflix, Tesla and others.
COMMENT
The ending of lockdowns and increasing vaccinations (ex-Canada) around the world: It is exciting the markets: earnings estimates are climbing and thrilling consumer stocks (cruiselines, airlines seeing increased booking for the second half of 2021). This excitement is weeks away for Canadians. The reopening is a good thing and it's coming. He maintains a barbell approach in his investing: he holds growth in communications, tech and global brand companies (i.e. Nike); and he also holds cyclicals to receive dividends. It's time for a pause in the recent climb in the US 10-year yield; we're now touching a ceiling of 1.4%. This run-up has caused some inflation scare in the market and caused cyclicals (energy and financials) to rally, but has tossed the best-quality growth stocks to the side. Without global monetary stimulus, we would have had higher interest rates. Powell is speaking now, and he vows to keep rates low and perhaps allow inflation to rise a little higher to encourage fuller employment. This will help earnings. Gold and stocks have been a good hedge against inflation; over time, inflation leads to higher earnings which lift share prices.
COMMENT
Canadian bank outlook He likes the Canadian banks here. Mid-2020 he added to them, hopeful about vaccines which would open the economy. Maybe he was a little early, but banks are now doing well. The equity markets are performing now. Banks are breaking out now and he'd buy. BMO just put out a great quarter. These are dividend payers and are long-term investments, not for day trading. Always good for income and growth.
COMMENT
Market outlook. Powell has justified valuation of equities with low interest rates. Now that rates are picking up, it will be interesting to see what he says about inflation and what the Feds are going to do. Technology particularly has been inflated due to low interest rates. The yield is going up to around 1.5%. Oil prices are also expected to go up.
COMMENT
Educational Segment. PRO-Eyes index is something he has created. It has 20 different factors with 4 valuation factors. The index shows you when there is opportunity or when to be cautious. The index is currently telling us we are at the high end of the market and caution is warranted. There is a high probability of a 5-10% correction in the next few months. The index is updated weekly on the Berman's Call website.
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Market. She aims to participate in what is working in the market. You saw these massive rotations last year. Investors shifted where they were willing to take risk from valuation risk to earnings risk. There is a lot of interest in names coming off cyclical bottoms. The market has been driven by early recovery stories. She looks at stocks on a case by case basis. Some lumber names will do well and some tech names won't. Companies that rely on acquisition for growth, are having to pay higher and higher multiples.
BUY
Electric Vehicle Infrastructure. This is a huge secular theme in the markets. It is a place where a lot of capital has been flowing. MG-T is one of her top holdings.
BUY
5G – How to play. Some of the semi conductor names are a way to play it and particularly KEYS-N. We are still in the very early stages of that build-out.
COMMENT

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. There are opportunities in both the US and Canadian markets. Currency variability is also a risk for Canadians. In terms of geographic allocations, a balanced approach would be favoured. If the majority of your expenses are in Canadian dollars, it makes sense to have some exposure to some Canadian equity. Unlock Premium - Try 5i Free

COMMENT
Today's sell-off in tech and modest rise in S&P is what is expected before an economic reopening, a boom-time like the Roaring Twenties. You're not early getting into these reopening names, like Caterpillar and the airlines, but not late either. Growth and tech names will suffer until this rotation ends, but don't give up. Growth and value stocks always come back, but there will be pain until then.
COMMENT

Technical analysis to forecast the next few months Tech analyst Larry Williams has been predicting markets accurately during this pandemic. Williams expects the current bull market in cyclicals (and rotating out of tech stocks) has room to run and that the Dow will peak in late April or early May, then we start going down. Past Dow charts show that we get a strong buying opportunity every 240 days. There'll be selling pressure around April, which paves the wave for a strong buying opportunity in mid July. There'll be pain, but it will lead to gain. Further, oil is a leading indicator of the stock market 3.5 years down the line; it takes time for strong oil prices to translate into strong stock prices. Charts from 2014 and 2018 prove this historically. So, the Dow has more upside. Lastly, a historic link between crude oil prices and airline stocks indicates that airline stocks will soar from now through late April. The, there'll be a consolidation then a strong rally at the end of the year. He considers these forecasts spot on, but not: we're talking about reopening stocks, not tech stocks, rallying.

COMMENT
Market Outlook. Looking back one year, that's when the TSX peaked, right before the March sell-off. The markets have decided to give a pass for 2020. Central banks have eased dramatically and interest rates are near zeros. Markets are reflecting the thinking that things will continue to improve this year.
COMMENT
S&P 500 companies' earnings season for the fourth quarter is nearly over and they have surprised on the upside. Q4 earnings were 4% higher than the previous year. Companies are starting to be more comfortable giving guidance. Demand is coming back in areas that have start reopening. The earnings need to continue to come in to support the market as these highs.
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