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Stock Opinions by Brooke Thackray

COMMENT
Inflation bifurcation in 2022. In 2021, everything went up in price because there was lots of market liquidity. But as the central banks rein in liquidity and governments cut back on spending, inflation will still exist, but some things will go up in price and others will remain the same or go down. As liquidity's removed, luxury items won't do as well this year as last. Inflation will keep going up for necessities, as demand for them will continue. You'll have to be particular about which sectors you want to be in.
Unknown
COMMENT
Tech stocks in 2022. Tech stocks have dominated the market. Market breadth has narrowed. Investors are focusing on large cap tech names. Right now, investors think about switching horses from tech. If interest rates start to tick up, you might see tech start to take a back seat. Some of the cyclical sectors might do quite well at least in the first part of the year. Some of the cyclical sub-sectors like metals and mining have been doing quite well, but not a really strong performance, and this could change in the new year as investors make some changes. Healthcare might be another area to benefit from outflow of funds from tech.
Unknown
COMMENT
Time to buy gold miners? Thinks so. Gold miners have done terribly this year, and are tax loss candidates. Seasonally, gold miners start to pick up this time of year. Gold miners are spinning out all kinds of cashflow. Negative sentiment, but sometimes investors start to refocus in the new year and may notice that these names are on sale. Seasonal tailwinds can help push them up at this time.
Unknown
DON'T BUY
Hot sector. Struggled recently with its acquisition and share offering. Pulled back. Investors are not happy. Acquisition is actually losing money. Be cautious. Longer term, sector is fantastic place to be.
Mining
WAIT
IYR vs. XRE Totally different products because of the country, given XRE is Canada and IYR is the US. XRE top 31% investments are in retail. IYR has only 9% retail. For residential, it's 25% XRE and only 15% IYR. Largest holding in IYR is AMT. IYR is more diversified, less exposed to retail which is a good thing. Safer place to be at this time is IYR. REITs usually do well from March to October, but this might start earlier this earlier, especially if markets turn down. Wait until February/March.
E.T.F.'s
DON'T BUY
XRE vs. IYR Totally different products because of the country, given XRE is Canada and IYR is the US. XRE top 31% investments are in retail. IYR has only 9% retail. For residential, it's 25% XRE and only 15% IYR. Largest holding in IYR is AMT. IYR is more diversified, less exposed to retail which is a good thing. Safer place to be at this time is IYR. REITs usually do well from March to October, but this might start earlier this earlier, especially if markets turn down. Wait until February/March.
E.T.F.'s
COMMENT
REIT seasonality. REITs usually do well from March to October, but this might start earlier this earlier, especially if markets turn down. Wait until February/March.
Unknown
PAST TOP PICK
(A Top Pick May 05/21, Up 14%) Recently pulled up again, with defensive sectors doing quite well. He sold in October. Longer term, in 2022, healthcare will be a good sector to be in. Put it on the back burner for now, and take a look again in May.
E.T.F.'s
PAST TOP PICK
(A Top Pick May 05/21, Up 10%) Not a sector to be in right now, but put it on the back burner. If it starts to outperform in January or February, might mean that the market's being a little bit skittish and could be vulnerable to a correction. Monitor this sector. In March or April, he'd be looking to transition into the sector.
E.T.F.'s
PAST TOP PICK
(A Top Pick May 05/21, Up 1%) This isn't the time for US government bonds. The better opportunity has been in the stock market. Take a look again in May to help build a more defensive portfolio to help protect against volatility in the summer.
E.T.F.'s
COMMENT
US financials seasonality. We're just starting to see the seasonality for US financials, which usually runs from mid-December to mid-April, though it can start in January. US financials have recently pulled back compared to the S&P 500. They're much more sensitive to interest rates than Canadian banks, because the Canadian banks have much higher dividends. US financials react strongly to inflation and interest rate movement. At the beginning of the year, inflation and interest rates tend to pick up. He's bullish on both US and Canadian banks. In the States, he uses the XLF, which should do well coming up in the new year, especially if interest rates and strength in the economy start to pick up. If investors can look ahead to when Omicron numbers decline, which they will, they'll see this sector do quite well seasonally from now till mid-April.
Unknown
BUY
We're just starting to see the seasonality for US financials, which usually runs from mid-December to mid-April, though it can start in January. US financials have recently pulled back compared to the S&P 500. They're much more sensitive to interest rates than Canadian banks, because the Canadian banks have much higher dividends. US financials react strongly to inflation and interest rate movement. At the beginning of the year, inflation and interest rates tend to pick up. He's bullish on both US and Canadian banks. In the States, he uses the XLF, which should do well coming up in the new year, especially if interest rates and strength in the economy start to pick up. If investors can look ahead to when Omicron numbers decline, which they will, they'll see this sector do quite well seasonally from now till mid-April.
E.T.F.'s
COMMENT
Tech ETF right now? In the US tech sector, granddaddy of ETFs is the XLK. There are some tech ETFs in Canada. Tech did extremely well from late October until early December. Seasonal period takes a brief hiatus, and then picks up again until late January. Performing well. He was overweight tech, but has taken that back as he transitions to the new year. Rotation might take funds away from tech towards the end of January. We're still in the window, but it's getting late to issue a "buy". If you're a trader, there could be some opportunity for the next month or so.
Unknown
HOLD
In the US tech sector, granddaddy of ETFs. Seasonal period takes a brief hiatus, and then picks up again until late January. Performing well. He was overweight tech, but has taken that back as he transitions to the new year. Rotation might take funds away from tech towards the end of January. We're still in the window, but it's getting late to issue a "buy". If you're a trader, there could be some opportunity for the next month or so.
E.T.F.'s
WAIT
Auto sector. Hard to predict when bottlenecks will resolve. Everyone's pointing fingers. If he had to guess, earlier in 2022. Already seeing cargo ships rescheduling, and other active measure. Right now, it's still a mess. He'd hold off. We're in the seasonally strong period until February, and we might actually skip that this year. Wait to see more progress.
Unknown
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