A Comment -- General Comments From an Expert (A Commentary)
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Market. The party is not over on these giant FANG stocks. Those that cater to working away from the office will do well. He does not think companies are pulling employees back into the office in great numbers. Multiples on tech stocks around the world are high. The sector has done incredibly well globally. Canadian tech stocks have done well, although the oil sector has not. There could be a directionless market until the US election, while infection rates will go up. You are going to see a lot more volatility in the markets. The VIX makes it look like people are complacent, but in fact they are worried. You may see pullbacks.
Paul Harris, CFAUnknown
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Oil Sector and Impact from E-cars. He thinks they will continue to grow over the next little while. TSLA-Q is not the only one. GM, Ford and all the majors are coming out with electric vehicles. Tesla has grabbed the imagination of consumers. He thinks E-cars will be more and more of the auto industry. It is hard to recommend getting out of the oil business just because of E-cars. The oil curve is still in co tango. Hydro carbons are not going away tomorrow.
Paul Harris, CFAUnknown
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Billy Kawasaki’s Insights - Picks from 5i Research. We saw a sharp sell-off in March and the tech sector recently sold off by up to 10%. It’s hard to predict when the next correction might come. We might see more volatility because of the US elections, but 5i does not expect a sharp correction. Unlock Premium - Try 5i Free
Stockchase InsightsUnknown
COMMENT
Stock splits Some believe that stock splits create value, but that's not true. Splits allow retail investors to enter, because shares are more affordable to newbie investors. Tesla and Apple are examples where existing shareholders sold a few shares after the split. The time to buy would have been a little time after the split, the post-split pullback, and not immediately when there is a new influx of buyers, as we saw recently.
COMMENT
Year to date, 30 stocks are up more than 100% and another 90 stocks are up more than 40%. However, none of the big 5 have gone up by 100%. The 5 top stocks are up because of speculation from better margins, faster sales and earning growths and less debt. The market is probably stretched. The bond yields will probably go higher. Equities are technically overbought. Trading below the 50-day moving average would signal a correction of around 11%.
Robert McWhirterUnknown
COMMENT
The correction may last over 1-2 months, but stocks should rise over the course of the year. There is no other alternative because of low yields from bonds. Stocks offer a compelling argument against bonds or short-term money. Looking at price to earnings growth, the big names are still at reasonable levels.
Robert McWhirterUnknown
COMMENT
Billy Kawasaki’s Insights - Picks from 5i Research. Today’s picks include Canadian technology as well as a Brookfield fund. The Nasdaq has tumbled whereas the TSX saw a lift to finish off the week on a high note. Unlock Premium - Try 5i Free
Stockchase InsightsUnknown
COMMENT
Volatile markets these days. Tech started strong today then fell. But this volatility won't last. New investors who jumped in will get a rude awakening this month and bow out. When stocks go down, they go down hard. That's why you need to hold cash....Housing has been strong given low rates and government support. Will Lennar turn offices into houses, given the flight to the suburbs? Drug stocks have been horrendous lately given political pressure, but everyone is focused on the vaccine race. But how do you make big money off the vaccine if governments will limit that cost? The market badly needs another stimulus package, which will lift this market doldrum.
COMMENT
The recent sell-off Historically, September strikes fear in investors. We some tremors mid-last week in tech stocks. There are three meanings: 1) the ghost of September is haunting us and foretelling volatility in the COVID year and amid U.S. elections; 2) the cracks in the tech stocks foreshadows a long-awaited rotation into growth and cyclical stocks; and 3) the recent sell-off means nothing at all and sell-offs in FAANGs like Apple are a blip as these stocks continue to rise. Make sure your portfolio is positioned for any of these fates.
COMMENT
Silver outlook after recent run-up He's not a commodities expert, but gold and silver are in primary bull markets. Gold is enigmatic, especially--so, obey what the charts tell you. This means, when gold makes moves, it makes BIG, bold moves, not small ones. Gold could go much higher in years to come. Silver is like high-beta gold with fewer markets and less participation from central banks and ETFs. Silver has more industrial uses than gold, so if there's a broad recovery, silver should do well. We're in the early stages of a recovery, and he expects gold and silver to do well.
COMMENT
When to sell a stock? First, you'll be right and wrong when selling stocks in your lifetime. Don't be emotional over a loss, but determine why--important. Other times, take profits when you have a major winner, but keep a core position. Other times, you rightly thought that a stock would grow, but now the valuation is rich and the catalysts for growth have gone--take your winnings and buy something better.
COMMENT
The discounted dividend is one measure of the true value of a stock. Interest rates are close to zero. In the old days, if we discount Apple's dividend by 5%, you can come to some sort of value. But discounted by 1/2 of 1%, the discounted dividend model would suggest that stocks are much more valuable today than when interest rates were higher.
COMMENT
Will we have a directionless market until the result of the US election? Three major areas of uncertainty. Most important is when we might have a Covid vaccine and how effective it will be. Secondly is whether Congress will provide protection for the millions who've lost their jobs. The third thing is the election result and whether it will be respected.
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