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

Market Outlook He thinks the market is still digesting the chance of a global recession. On a PE multiple, you have to look at forward earnings and those seem to falling going forward, this should result in prices falling. Analysts now think we should expect a decline in earnings and the multiple is also coming down. Slower global growth, thanks in part to Coronavirus, is driving forecasts of lower demand around the world. Add to this OPEC and Russia fighting over prices and market share in the oil market. This will impact employment in a lot of industries in North America.

Energy stocks? Right now stick to the large, liquid energy stocks. There is growing concern of counter-party credit exposure within the mid-stream and pipeline space. He recommends ENB-T and TRP-T for pipelines and SU-T and CNQ-T for producers, if you want to own any energy stocks. SU-T yield is 7.2%, while CNQ-T is 8.4%. CNQ-T is probably still showing positive cash flow, even at these oil price levels. You may still lose money, but it will be much less than a smaller player.

After Coronavirus? Once we know we are all clear with the virus, one could look at more cyclical names including financials, energy and industrials. In the meantime look to REIT's, healthcare with dividends, utilities, certain consume staples and some high-quality tech companies.

Gold? He likes gold as a safe haven. He thinks it could head to $2000 per oz, especially if interest rates continue to fall. He prefers owning the GLD ETF -- why take unforseen operational risk? He also holds Kirkland Lake.