Keith Richards

He uses three dynamics for analyzing investments: trend, a quantitative risk model, and a fundamental model. Trend is the all-important one. The quantitative risk model itself consists of trend, market breadth, sentiment, fundamentals, and breadth of momentum. A simple rule for investing is to watch what the Fed does with interest rates and says about earnings. When the Fed indicates stimulus, the market goes up and when it pulls back on stimulus the market goes down. Because the market indicated an alert in April, he went to 40% cash and has reduced that now to 30% cash. The market is still in high risk territory and the trend is still bad. Equities purchased are defensive in nature including staples.

He likes gold in general. Equinox has consolidated after months of of downturn, same as gold itself. If it breaks out it could double. Gold needs to break out too - $2000 would be good.

It had basically been moving sideways but the downtrend is continuing so it is less appealing.

The question was on precious metals. There are three ways to invest in precious metals : buy streaming companies, buy 'paper gold' i.e. the bullion itself, buy the companies that produce it. He owns both the commodities and stocks.You should own some gold. Producers are coming off lows so there is at least short term upside.

Owns it in the aggressive equity platform. It is at the support level of 2015 but may not bounce back. It is a buy only for risk takers.

He doesn't like it. It has broken support on a five year chart and is maybe oversold but hasn't formed a base yet. Could be sold for tax loss purposes

Owns some based on both aggressive and conservative models. Is in an uptrend but swings a lot. He trades in and out and may add to it. Look at the 5 and 10 year charts.

Has traded it in the past. It is forming a base without new lows. You can hold it for the decent dividend.

(A Top Pick Jan 16/20, Up 21%) Keep in mind that the total returns for his past picks are based on almost three years. The total return for Enbridge is due to dividends since the actual stock has been flat with only a 1% return over that period of time. Still owns in the income platform

(A Top Pick Jan 16/20, Down 6%) He doesn't hold stocks for long, maybe 3 to 6 months. He trades them and that is how the money is made.

(A Top Pick Jan 16/20, Up 13%) When commodities were doing poorly in 2020, he bought and sold this ETF, thereby making money. He is just starting to get back into commodities.

Banks are in a downtrend and not doing well in these times. He won't buy a stock in a downturn. To buy a stock for their conservative account, there must be 3 successful peaks showing higher highs and higher lows on the weekly chart. Also it should be above its 200 day moving average. One breakout does not mean a buy.

It has broken out in a downward trend from its base. He doesn't trade on opinions, just the rules. This has helped them to do well in this market.

He sold it earlier in the year but likes it a lot. Is in a sideways trend near the top. He is starting to look at oil again and it looks like there will be a big rotation in commodities for years to come - a mega cycle.

Rising interest rates should be good for banks but they are also dealing with more defaults. There is some recent support but if it breaks below $80, sell.