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COMMENT
Canadian job numbers -- loss of 41k for July.

The unemployment rate remains the same. But the job-loss number isn't too surprising given that we are expecting a bit of softness in the Canadian economy in the middle 2 quarters of the year. Jobs market will continue to be a bit choppy, especially with the push and pull between part-time and full-time.

COMMENT
Sectors.

That Canadian manufacturing posted gains is surprising, but is probably just a result of the ebbs and flows of the economy. And there's the tariff issue affecting everything. 

In the US, technology makes sense. Financials also make a lot of sense in this environment. Likes industrials, they've been right at the top of the 11 sectors so far this year in terms of performance. Among the very diverse healthcare industries, you have to be selective; some names have been beaten up, others have held up quite well. 

He's being very selective in the Canadian market and somewhat cautious.

COMMENT
Latest earnings theme.

When you look at the US market, we're seeing about 8.5-9% YOY Q2 growth. That's more than expected. Good news. Technology continues to lead -- great reports from MSFT, NVDA, GOOG over the last month or so. About 81-82% of US companies so far this quarter have beaten earnings expectations. 

The word he'd use right now would be "resilient". 

COMMENT
Tariffs.

It's all very challenging. News that comes out one day on tariffs can change the next. His team goes back to their quantitative methods, using the formulas they have to forecast expected earnings based on the numbers they have.

WEAK BUY
Good for income?

Utility index holding about 15 names including FTS, EMA, and H. Very defensive, low beta (about half that of the TSX). Not a bad place to be for the income-focused investor looking for stability. Longer term, if interest rates move higher, then valuations and prices will come down. Risks for utilities include regulatory decisions and capex overruns. 
 
Not a sector he likes or holds right now. This ETF (38%) has underperformed the TSX (95%) over last 5 years. Yield is ~3.9%.

DON'T BUY

Sold a while ago, mainly because rebound in Chinese market wasn't there after Covid. The slightly lower-tier names, such as TPR, have done better. The macro environment explains the difference -- consumers are being very choosy as to what they own. Given that we're probably mid-cycle at this point, not an area he's attracted to (unless the valuations got so cheap you'd need to take a look).

DON'T BUY

Has performed a bit better than LVMH. You can see this in the 200-day MA, which is still trending slightly higher but flat. The slightly lower-tier names, such as TPR, have done better. The macro environment explains the difference -- consumers are being very choosy as to what they own. Given that we're probably mid-cycle at this point, not an area he's attracted to (unless the valuations got so cheap you'd need to take a look).

DON'T BUY

Macro environment is tough for energy and energy infrastructure. 200-day MA starting to trend lower, not a fantastic sign. Regulatory environment isn't that helpful either. Nice yield of 5.8%, which will probably remain steady going forward.

Not sure that government's new openness to exporting energy gives him optimism, as the stock price isn't reflecting that.

COMMENT
Mag 7 favourites.

In his portfolio he has AMZN, AAPL, GOOG, and NVDA. Those are the names he favours. META screens well, but he doesn't own it because you can't have 90% of a portfolio in tech/Mag 7 names. MSFT always seems expensive.

TSLA is a different animal entirely, based on expensive valuation. Concerned about management and where management attention is at any given moment.

BUY
Concerns about AI strategy.

AI is an important piece, but not the only one for a company like this. Terrific cashflow, cash reserves. Strength in the balance sheet speaks for itself. Some of the results this week are conducive to higher returns going forward and, in turn, a higher stock price. Making investments in US, so US government no longer looking to punish them.

Has broken above 200-day MA today, which is one positive technical signal.

BUY

Basket of Canadian higher-dividend-paying stocks, largest weighting is banks at 24%. Oil, gas, and pipelines make up ~30%. Names such as TD, RY, and ENB. Likes and owns. Getting these dividends in a stable or falling interest rate environment makes sense. 

When you're buying a dividend strategy, you don't necessarily need to wait for a better entry point. Not overbought at 52 RSI. If you wait, then you're missing out on dividends for the time you're waiting. That said, September is usually a weaker month for markets (6/10 years for the S&P have been negative). Yield is ~4.6%.

WEAK BUY

Consolidation in the space had been expected, and this has done well. Trading as 12x forward PE, with a decent growth rate. Can't say anything wrong about the name, but not his focus right now. Since late 2022, sees technical pattern of higher highs and higher lows. Shares are above the 200-day MA, which is trending higher.

In his portfolios, he owns V, MA, and AXP. See his Top Picks.

RISKY

Dark clouds are concern about overstated revenues plus current regulatory environment. If you want to invest in something and look like a hero a year from now, you could take a very small percentage. Taking on risk if something else blows up. Can't see a basing pattern yet.

Stock's PE is cheap, but he sees negative earnings growth over next few years. Reports of hedge fund companies getting in is a positive. Very oversold.

HOLD

Stock's been flat and stuck at these levels for the last little while. There may have been a downgrade yesterday. Thinks it's undervalued. Great dividend yield, dividend should remain steady and increase. Steady growth company; sees ~8% going into the next few years. Price-to-book is 1.6x, fairly cheap relative to some peers.

Wait and see. Market's hesitant to push it to new heights. If you forget about the last few months, 200-day MA is still trending higher thought flattening a bit. Stock price is below that now, but it's done that before and moved up again. Getting paid to wait.

PAST TOP PICK
(A Top Pick Sep 24/24, Up 23%)

Not a lot of meaningful competition. Good earnings growth at 13-15%. Not expensive at 20x forward PE. AI and  cloud momentum is key moving forward. Ad platform continues to be the monster out there. Will perform well as macro conditions and ad budgets improve. Strong cash position provides resilience during tough times and could lead to aggressive share repurchases, which helps with EPS.

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