Gordon Reid
President at GoodReid Investment Counsel
Member since: Oct '07 · 3872 Opinions
Rating Card
| All | 
Rating
| 
Big Win
| 
Win
| 
Neutral
| 
Loss
| 
Big Loss
|  |
|---|---|---|---|---|---|---|---|
| 4.94 | 352 28.83% | 300 24.57% | 185 15.15% | 242 19.82% | 142 11.63% | ||
| 1 Month | 5 | 10 3.34% | 110 36.79% | 97 32.44% | 80 26.76% | 2 0.67% | |
| 6 Months | 5 | 56 19.72% | 91 32.04% | 52 18.31% | 65 22.89% | 20 7.04% | |
| 12 Months | 5 | 102 38.06% | 52 19.40% | 20 7.46% | 55 20.52% | 39 14.55% | |
| 2 Years | 5 | 112 47.46% | 35 14.83% | 11 4.66% | 29 12.29% | 49 20.76% | |
| 5 Years | 4.69 | 72 53.73% | 12 8.96% | 5 3.73% | 13 9.70% | 32 23.88% |
Stock Opinions by Gordon Reid
Everybody's different. Some of us can take these ups and downs with ease, while others are glued to the TV or computer. The overarching lesson here is that, hopefully, investors came into this well prepared, well diversified with asset mixes that suited their objectives, and with portfolio target levels in place.
His firm spent January and February bringing asset levels back to target levels. Equities had run in 2023 and 2024, so any excess over target level was brought back.
Now that we're in the current situation, just let it play out and let all the chapters be written. He's talked to a lot of clients and reminded them that we go through these events fairly often. Think back to the pandemic of 5 years ago, Brexit of 2016, GFC of 2008, 9/11, and so on. He gently asks people how they felt in the middle of that, with markets going straight down? That brings back memories of fear.
But the lesson is that 6 weeks ago, we hit an all-time high in the markets. That means that all those past events were overcome.
His playbook is well known -- use scare tactics and intimidation to extract greater concessions than he might get otherwise. We saw this in Canada just weeks ago when he was talking about the 51st state and diminishing us as a nation. And you saw Canada's reaction. What happened next? He got some concessions, and then he backed off.
That same playbook will likely play out with the rest of the world. But, of course, no one really knows. If you're portfolio is well structured, you should be OK.
Yes, he'd be buying for current clients with new money or for brand-new clients. This will turn out to be a good buying opportunity. Keep your head and let time work for you. Event-driven recessions (rather than economic, cyclical recessions) tend to be shorter and shallower. About halfway through a recession, the market (being a forward-looking indicator) starts to move up.
But he's not buying tactically. His firm takes a strategic approach, they're not market timers. Which means that they ride through these events, as uncomfortable as they are. His firm's approach has worked over the long term, so why mess with that?
It will recover. Whether that's in 2025 depends largely on what the rest of the market does. Its business plan is changing. AI is really taking over from the Search model, and the market sees its market dominance in that area declining. They'll have a share, but we don't know how much.
Has other initiatives, like YouTube, that are real money makers. 47% of people who use the internet go to YouTube once a month or more. A very good hold at current valuation of ~mid-high teens PE.
Whole healthcare complex was weak in 2023 and 2024, so the valuations were reasonable coming into 2025. Current market downtrend plus today's threat of tariffs on pharmaceuticals, and we don't know how this will all end. Drug pipeline is particularly exciting.
Can't tell you when it will turn the corner, but it's a good component of a diversified portfolio.
Financial sector offers great promise, though it's reacted to current markets by pricing in a potential recession. Slower economic growth would not be good for banks. Absent a recession, with consumer confidence returning and unleashing M&A, the sector provides a good opportunity.
Don't value it on PE. Instead look at price to book, and it's expensive at 1.8x. Less expensive options include BAC and C.
Financial sector offers great promise, though it's reacted to current markets by pricing in a potential recession. Slower economic growth would not be good for banks. Absent a recession, with consumer confidence returning and unleashing M&A, the sector provides a good opportunity.
A less expensive choice further down the food chain from the likes of JPM.
Financial sector offers great promise, though it's reacted to current markets by pricing in a potential recession. Slower economic growth would not be good for banks. Absent a recession, with consumer confidence returning and unleashing M&A, the sector provides a good opportunity.
A less expensive choice further down the food chain from the likes of JPM.
Yes. That will be the second wave of Trumpism 2.0. First he wants to take care of tariffs, then give people a big tax break (even though they'll be paying more in tax through tariffs). The next phase is to reduce regulatory burdens on companies.
He hears that the M&A pipeline is full, especially on the higher end. Lots of deals being either done or contemplated.
