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

Outlook for Canadian banks. Biden presidency is neither positive or negative. In Canada, too much negativity based on housing. The government has taken on that risk and stabilized markets. Key dynamic is whether government will continue to provide support. Banks' dividends are well covered. Growth won't be as strong as in past 20-30 years, as tech is disrupting. He's not selling out, but is reducing positions and putting money elsewhere, as they won't be the outperformers of the past decades.

Averaging up in renewables vs. utilities. If you're a younger investor, average up in your strong names that you feel good about for the long term. He feels pretty good about renewables for the long term. Renewables and utilities are similar, but the contracting is different. A distribution utility has customers; whereas for a renewable company, the utility is the customer, and there are a lot of moving parts. Renewable power generator is a bit riskier. Brookfield Renewable has a lot of hydro, so it's a go-to name, especially with its pedigree. Likes the space long term, but he'd wait for a pullback for all these companies. Keep the stock at the weighting you originally set. Always good to rebalance your portfolio with your targets in mind.

Would owning more than one pipeline be unwise? He owns ENB, PPL, TRP, and IPL for a total weighting of 15%. Should all raise dividends in 2021. All their businesses are fundamentally sound. They each have different strengths, so provide diversity in case something goes wrong with one. PPL and ENB have a higher yield. TC is a safer bet due to nat gas exposure. PPL has to rejig its growth plan, and excellent to own at these levels. Whole space is screaming value, and so is likely to attract capital as things normalize.

2021 outlook This year, he's not optimistic about bonds because they're paying very low yields. He is concerned about inflation. rising rates is the biggest risk--and opportunity--in 2021, and rates will rise inevitably, though he doesn't know when. He's bullish large-caps. A worry is the new strain of Covid, which is demanding a faster vaccination rate. TINA -- there is no alternative -- to stocks. Overall, he's positive about 2021.

Georgia senate race. It would be easier for Congress to spend on infrastructure if the democrats win. We see this particularly in the gold sector where it reflects the printing of money for these programs if the dems win. From a market perspective, the only reason the markets are stable is with the promise of more spending.

He hopes the bull market run this time won't end in tears, but fair market value is around 20-50% lower. However, it is hard to predict where it tops out. It could be years. He's not sure if the correction will come this year, but there will be volatility to take advantage of. There is still a lot of money on the side lines.

Educational Segment. At market tops, where we see divergencies in stock price and momentum there is market breadth. When there is market breadth, we usually get good follow through. Over the next couple weeks, he is keeping an eye out for market breadth indicators that points to volatility in Q1. Q1 should offer a buying opportunity. Market breadth is very strong and average stocks should see some performance. He would shy away from over invested large cap tech where we could see under performance. He has shifted from large cap names to an equal weight allocation.

Market. 2021 will differ from 2020 because 2020 had an unprecedented volatility in the markets. We will see a re-opening of the economy as we get a large portion of the population vaccinated. We will see a re-allocation of spending away from the stay-at-home paradigm. He believes a large portion of the workforce will be back in the office by the end of 2021. He is not touching cruising and airline companies. These will be the last to recover. Restaurants and hotels will really benefit in 2021 as the economy re-opens.

Markets sold off today off recent record levels. It's easy to view the most bullish stocks recently as continuing their run in 2021, like Tesla. You rarely go wrong buying stocks like this on down days--but this is short-term. We want stocks that stand the test of time--a year and beyond--stocks that grow more enticing with time. It's a longshot Biden will raise taxes. Also, it's okay to take some profits. A third vacccine should be approved soon, but we're doing a horrendous job disseminating vaccines. The White House has dropped the ball.

Looking back on 2020. He's grateful to have made it through one of the most tumultuous years in quite a few. A year ago, who would have thought the virus would make economies a shell of their former selves. He's not sure the shell is going to be rebuilt anytime soon. At the same time, you wouldn't have believed that indexes would be reaching new highs. The market isn't always going to interpret facts in the most obvious way.

Looking ahead to 2021. Interest rates will be a determining factor. If interest rates go up again, the asset classes that have benefited from low rates will be vulnerable. Impacted will be everything from real estate to French wine to equities. A year from now, we could be discussing new record highs and the biggest economic boom in living memory, but it will depend on interest rates.

How to step into the stock market upon retiring? Just add money a little bit over time, and invest that way. Mutual funds are still a fabulous way to diversify. We're all going to live longer than we expect. Very important to have your savings grow into retirement. Monthly contributions are a way to do that. It will give you the safety you're looking for through dollar cost averaging.