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

The impact of U.S. debt on markets It comes back to the US dollar, which is up $6 this year vs. world currencies. Some US companies will miss Q2 earnings and those with overseas business will get hurt by that strong dollar. That said, the US dollar is still the default currency, even though rates are really low and this massive deficit. Everyone else is highly indebted as well, so there's no other choice.

The impact of U.S. debt on markets It comes back to the US dollar, which is up $6 this year vs. world currencies. Some US companies will miss Q2 earnings and those with overseas business will get hurt by that strong dollar. That said, the US dollar is still the default currency, even though rates are really low and this massive deficit. Everyone else is highly indebted as well, so there's no other choice.

A TFSA: If one spouse dies, can both TFSAs be rolled into one? Yes. It can't rollover to another family member, but it can to a spouse. Each case is different and unique though, so due some diligence.

Fresh rally, fresh highs in US. He's not excited, he's risk off. If we have a rally, it will probably be the last before there's a correction.

Will earnings season be a shock? We won't see that many misses, but projections won't be that exciting. Ample multiples in the US. In Canada, we're struggling with the resource sector. He believes that gold stocks only work when inflation rises, and it may not get back to 2% for a significant period. AI is beginning to have an impact on costs, and 5G will speed everything up. So inflation may lie dormant for the time being.

The old economic models aren't working. The world economies have evolved away from manufacturing toward service. And AI has added to that. We've had 10 good years of development, and we'll see the results of that, especially with 5G.

Where to park US cash? In a US dividend focused ETF. With the Canadian dollar strengthening, you're going to lose a bit in the exchange rate, so this ETF would make sense. But wait to buy until we see what happens with the Fed, as you might get more with your CAD.

Use ETFs to start an RESP? ETFs are perfect. Though you start off small, you still get instant diversification. ZLB is low volatility with good quality stocks, if you want to be really cautious.

Thoughts on the current market. He's still pretty fully invested. But in any market run up, not a bad time to take profits. Look for dividends, rather than growth stocks. Be a little more defensive. There's enough momentum coming out of the Fed to keep markets relatively happy. But come September, he'd be a little more concerned.

We're locked in a tug of war between a slowing economy and expectations for lower interest rates. US Fed Chair Powell meets with the Senate this week. Canadian oil stocks aren't attracting investors, because there is too much product that can't get out. Yes, some oil stocks are paying a high yield, but these may be too good to be true and unsustainable.

TRST has been punished this week for violating Heath Canada rules He doesn't own cannabis. The industry is unsettled, unclear where the value will be created and the regulations keep evolving. There's also the issue of corporate governance--who's on the board? He's seen some shady characters on the board of some cannabis companies (not TRST). Also, valuations are astronomical.

How are the markets? Markets are good, and so is the price of gold. So life is good.

Where is the price of gold going? Nice to see it break out after 5 years. It's going a lot higher. The global monetary and fiscal situation is a mess. The only way central banks can keep things going is by dropping interest rates and maintaining stimulus. Gold is moving because interest rates are moving down. It's what central banks are saying about the quality of the expansion, and it's not good, so they have to drop interest rates. All things come to an end. He's looking for the S&P to reach its calculated fair market value, he calculates it at about 3100, and we're at 3000 now.

Earnings expectations falling? A year ago, consensus for this quarter was a gain of 9%. Now it's looking for -2.9%. The bulls are saying 2019 will be soft, and 2020 will be a recovery. The expected earnings chart says otherwise.

Critical level for the S&P 500? Structural support level is 2550. If the market pulled back that far, you'd probably get a nice rebound from there.