A Comment -- General Comments From an Expert (A Commentary)
COMMENT
Gold stocks. He's bullish on gold. Sometimes it trades like a commodity (risk on), sometimes like a currency. The trend is your friend, even if you can't quite explain why, so respect the price action. Gold is undeniably in a cyclical bull market. Might be only at the middle innings of this trade. He plays it through FNV, the best way to get exposure to the commodity and exploration, while insulating yourself from financial and geopolitical risk.
COMMENT
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Most experts suggest a 5%-10% cash holding as a general rule. However, holding too much cash is essentially a market call and it is generally better to be in the market than out. 5i would not adjust cash on market conditions since this is just another form of timing the markets. Unlock Premium - Try 5i Free
Stockchase InsightsUnknown
COMMENT
Pent-up demand will be the next leg of this bull market. The next leg will start with vaccinations. Sectors to play: cruiselines, airlines, resorts, credit cards, Google (travel bookings) and oil--like Boeing, United Airlines, American Airlines, Wynn, Las Vegas Sands, Disney, AmEx, Chevron and Pioneer. However, Main Street businesses will go under and millions will lose their jobs, driven by record-breaking Covid numbers currently.
COMMENT
Vaccine news encouraging enough to be back into a long-term bull market? Pandemic triggered an unanticipated recession. Then the economy got reorganized and companies like Zoom took off. Now the rest of the economy has picked up. Confidence returned to investors in November. With the end in sight, the economy should be healthier next year. A lot of damage has been done especially to the small players. He's focused on healthcare, tech, and stocks focused on the reopening economy.
COMMENT
COMMENT
Buy Canadian or foreign banks now? Canadian. More stable. Dividend income is taxed more favourably. They're all similar and do well. BNS exposure in South America gives them a better growth opportunity than the others. The US banks have been known to go bankrupt. European banks are a mess. Morgan Stanley is a good buy for capital appreciation through their money management and investment banking.
COMMENT
Too late to get in on semiconductors? Work from home triggered computer purchases, needing more semiconductors. 5G will also require semis, as well as vehicles and fridges. Semi outlook is wonderful. Intel is the only one that's struggling. He owns Broadcom, as they manufacture a lot of different components. Extremely well managed. An ETF is also a decent way to play it.
COMMENT
We're seeing a lot of growth indicators, such as copper. The move towards a greener economy is moving copper. In terms of the S&P500, it was the biggest month since 1987, and small caps saw the biggest month ever. We see some rebalancing today.
Larry Berman CFA, CMT, CTAUnknown
COMMENT
The markets wants and needs the stimulus. The short term mistake is to not spend enough to get through the pandemic. Things will normalize in a couple years and we may get back to austerity and balanced budgets, but for the next couple years, governments are expected to spend. The central banks should continue to hold interest rates low.
Larry Berman CFA, CMT, CTAUnknown
COMMENT
The year-end rebalancing shouldn't see too much changes between sector. There may be switching out of work from home names and to economic reopening stocks. The stocks that haven't performed because of covid will benefit the most as things normalize.
Larry Berman CFA, CMT, CTAUnknown
COMMENT
Educational Segment. In relationship to the longterm trend, and the 200-day moving average, the risk and return ratio is not as good as it could be. The market looks like one you don't want to chase rallies in. Given how far we have stretched from the mean, there is a high probability of a market correction around 10%. A note of caution for investors. Look into periods of weakness to be a buyer.
Larry Berman CFA, CMT, CTAUnknown
N/A
Market. You have two dynamics that affect asset prices – inflation and growth. You are seeing a switch between these two. We are moving from a deflationary bust to an inflationary boom. Think about the previous decade and what was hot and what was not. We had gold getting a 400% return and the S&P a 5% return, neither compounded. There are shifts, decade by decade between the dynamics for asset prices. This is a really tough environment. Bonds cannot provide any shock absorber as they have done so in the past. He thinks we will revert to the norms in the next decade. You need a diverse set of assets.
Mike PhilbrickUnknown
'%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)
