A Comment -- General Comments From an Expert (A Commentary)
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
BUY
Gold ETFs. Will be covered in past picks. Investors buy gold for uncertainty. With the vaccine coming along and uncertainty dropping we are seeing a shift into the inflationary trade. This is a buying opportunity. Most investors don’t have enough gold in their portfolios. Gold ETFs are viable options. They should be in your portfolios.
BUY
Health Sciences ETF. If you are focused more on the idea of something vaccine related, look at IBB-Q. Biotech is where you will see that type of technology manifest. XHC-T is currency hedged, if you want that now. It is quite diverse. LIFE-T has covered writes, which do well in a slightly flat or slightly up market.
PAST TOP PICK
(A Top Pick Mar 25/20, Up 0%)US $. It could have turned into a safe heaven. The dollar is the primary determinant of many asset classes. Its weakness has create strength in a lot of the commodity complex. He thinks this will continue and things that are resource and commodity based will probably have a bit of a run here.
BUY
Recommendation for a total [global] market ETF, low cost. Consider taxation issues. On a total return ETF you might buy a combination of horizons ETFs so you would not lose the dividend tax credit. HXDM-T and HXEM-T and HXS-T would round it out and avoid any distributions. In your TFSA or RRSP you can use the VXC-T, which excludes Canada.
COMMENT
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Earnings have been quite good this year and companies have been showing decent growth. A recovery is expected next year although some sectors are getting a little too hot. Consumer discretionary and industrials should outperform. Unlock Premium - Try 5i Free
Stockchase InsightsUnknown
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