A Comment -- General Comments From an Expert (A Commentary)
COMMENT
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Value stocks and financials are seeing strong performance. Certain sectors are seeing a steep correction. Growth fundamentals remain pretty good. Selling can cause more selling for growth stocks especially. Unlock Premium - Try 5i Free
Stockchase InsightsUnknown
COMMENT
Cryptocurrency. It's getting a lot of attention, especially as prices go up. Coinbase is a bit different, as there's more of a business model behind it. She's just watching to see how the space evolves. A difficult investment to make to generate long-term, sustainable returns. Volatile. More attention will also garner more regulatory scrutiny.
COMMENT
Economic recovery. Yes, predicated on 2 things. Extraordinary stimulus (as in the US) plus an effective vaccine rollout (as in the UK). In those countries, economic growth momentum will pick up sooner. In Canada, logistical issues will eventually get resolved. Our recovery will be somewhat uneven, but the trend is upward.
COMMENT
Bitcoin. Even if it doesn't end well, is there an opportunity in the short to medium term? As central banks move ahead with digital currencies, they will look at existing cryptocurrencies with a great deal of suspicion and regulations will be implemented. A preferable way to be involved is through semiconductors, the picks and shovels of cypto mining. Digital currency will empower payment networks and banks that are most ahead in digital, and the long-term winners will be the existing businesses that are most adapted to the digital world. Both JPM and First Republic have significant investments in digital banking, and these will pay off.
COMMENT
Let winners run? He lets winners run. Warren Buffett says that selling your winners to buy more of your losers is like cutting your flowers to water your weeds. But there's a limit to how far you let your winners run. Can't let them run beyond control. Remember the lesson of Valeant; it was punishing when it pulled back. He has about 25 positions. He trims winners. There are risks associated with a winner becoming too big a position. A financial advisor can help navigate this.
COMMENT
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. International stocks remain cheaper at these levels compared to Canadian or US. Holding tech stocks is still a good choice even with rising interest rates. Consumer cyclical and industrials remain good sectors for recovery plays. Unlock Premium - Try 5i Free
Stockchase InsightsUnknown
COMMENT
Messianic thinking: Some believe it's a sin to sell any stock, because they feel buying stocks is a crusade. He's talking especially about cryptos, GameStop and the Reddit trade. Beware of putting your faith and money in just on sector of the market. And take profits where needed. Really, we're worshipping greed here. He would sell Bitcoin now.
COMMENT
Certain parts of the market are showing signs of a bubble. The causes are ease of access for the investing public and cheaper trading costs, which are both good and bad. He wants democratization of the market, but it's hard to succeed in the market and those entering the market with little or no knowledge could suffer losses. We're in a classic situation where the general public believes we're still in a recession when we exited that many months ago. This happened in 2009, too. Rather, markets are looking ahead with the U.S. going full bore as businesses expand. Earnings will hit new highs later this year. We'll likely grow 30% in earnings in 2021, while coming years look promising.
COMMENT
Big banks are starting to report this week. Earnings will probably be positive. Geopolitical risk seems to be ramping up in Iran, Ukraine and Taiwan. In regards to the Fed's, the growth is being induced by the fiscal support. The question is over the next few years, will it be enough to kick start the economy?
Larry Berman CFA, CMT, CTAUnknown
COMMENT
Gold. Gold has a flight to safety type movement. However, we are seeing money flowing into digital assets. Gold, traditionally chosen for safety, is being replaced by bitcoin and other cryptos.
Larry Berman CFA, CMT, CTAUnknown
COMMENT
Educational Segment. There are signs for a melt-up bubble. The BoA has released a report saying that there are more funds flowing into the equity markets than in the last 12 years. It is phenomenal. Looking at two indicators today, the first is bull-bear ratio. The S&P 500 sentiment is becoming extreme. At these times, we see corrections of 5%-10%. We are not seeing the same degree of speculation, however. Looking at the Opportunity vs Caution indicator, it is reaching a high caution level. There is froth. Once earnings get priced in, there will be a sell in May. Need to be more defensive in portfolios in the next months. We are seeing traditional late cycle behaviour but the bubble can get bigger and bigger since the Feds will not be cooling the markets.
Larry Berman CFA, CMT, CTAUnknown
COMMENT
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. In terms of playing the recovery, consumer cyclicals and industrials should do well as a sector. Financials such as banks, but also alliterative banking plays should also do well. E-commerce should continue its secular growth. Unlock Premium - Try 5i Free
Stockchase InsightsUnknown
COMMENT
Market outlook. Currently focusing on mid and large caps in North American. Markets tend to remain constructive as long as central banks are. You have a receding pandemic in the US and trillions of dollars of fiscal spending that goes directly into the economy. What works may change due to the stimulus. This would be value stocks rather than techs. As a bull market continues, you get a rotation into quality value with good balance sheets.
Jason MannUnknown
'%20fill='%23ffffff'%3e%3cg%20id='Pager'%20transform='translate(423.000000,%201755.000000)'%3e%3cpath%20d='M243.295367,17.286474%20C243.68919,16.9045087%20244.327703,16.9045087%20244.721525,17.286474%20L249,21.4361302%20L253.278475,17.286474%20C253.672297,16.9045087%20254.31081,16.9045087%20254.704633,17.286474%20C255.098456,17.6684393%20255.098456,18.2877274%20254.704633,18.6696927%20L249.35654,23.856763%20C249.159628,24.0477457%20248.840372,24.0477457%20248.64346,23.856763%20L243.295367,18.6696927%20C242.901544,18.2877274%20242.901544,17.6684393%20243.295367,17.286474%20Z'%20id='Path'%20transform='translate(249.000000,%2020.500000)%20scale(-1,%201)%20rotate(-90.000000)%20translate(-249.000000,%20-20.500000)%20'%3e%3c/path%3e%3c/g%3e%3c/g%3e%3c/g%3e%3c/svg%3e)
'%20fill='%23ffffff'%3e%3cg%20id='Pager'%20transform='translate(423.000000,%201755.000000)'%3e%3cpath%20d='M243.295367,17.286474%20C243.68919,16.9045087%20244.327703,16.9045087%20244.721525,17.286474%20L249,21.4361302%20L253.278475,17.286474%20C253.672297,16.9045087%20254.31081,16.9045087%20254.704633,17.286474%20C255.098456,17.6684393%20255.098456,18.2877274%20254.704633,18.6696927%20L249.35654,23.856763%20C249.159628,24.0477457%20248.840372,24.0477457%20248.64346,23.856763%20L243.295367,18.6696927%20C242.901544,18.2877274%20242.901544,17.6684393%20243.295367,17.286474%20Z'%20id='Path'%20transform='translate(249.000000,%2020.500000)%20rotate(-90.000000)%20translate(-249.000000,%20-20.500000)%20'%3e%3c/path%3e%3c/g%3e%3c/g%3e%3c/g%3e%3c/svg%3e)
