Director & Portfolio Manager at Private Wealth Management, ScotiaMcleod
Member since: Jun '09 · 3203 Opinions
General direction is down, though it will be a bit sticky and choppy at times. Inflation is last year's problem. It will bounce around 2-3%, but we're in the right spot.
We've talked a lot about markets being resilient this year. The new word might be "defiant". Forget that September's typically in the red, the market's up. October before an election is usually tough, but it's not bad so far.
That said, since 1992 there's an average 2.5% drop in markets in October during US presidential election years; 63% of the time, markets are down.
Agreed. You need to be very selective as to what areas you want to be in. With the mega-caps being such a big part of the S&P, and showing the valuations they are, no doubt that the S&P as a whole is kind of expensive.
Revenue and sales will be more in the single digits. But the bottom line looks pretty attractive. For the S&P 500, seeing ~14% earnings growth for 2025, and ~10% for 2026. Investors will focus on those lines.
He likes XEI and VDY. Both pay ~5% yield. VDY is about 45% Canadian banks. XEI is a bit more diversified, with 23% Canadian banks as its top weighting.
For income, he prefers these to a covered call strategy. Though the covered call strategies look very attractive, they tend to underperform the underlying securities, especially in a rising equity market. Great if you need the income, but you'll get a better total return with the other.
He likes XEI and VDY. Both pay ~5% yield. VDY is about 45% Canadian banks. XEI is a bit more diversified, with 23% Canadian banks as its top weighting.
For income, he prefers these to a covered call strategy. Though the covered call strategies look very attractive, they tend to underperform the underlying securities, especially in a rising equity market. Great if you need the income, but you'll get a better total return with the other.
VBAL and XBAL are great, one-stop shops for smaller accounts. Leave it and forget it. Typically has about 40% fixed income, which would have had a tough run up till about a year ago.
VBAL costs about 25 bps for the MER, XBAL costs about 20 bps. VBAL is 41% Canadian content, XBAL is about 45%. XBAL has outperformed for the last 3 and 5 years.
VBAL and XBAL are great, one-stop shops for smaller accounts. Leave it and forget it. Typically has about 40% fixed income, which would have had a tough run up till about a year ago.
VBAL costs about 25 bps for the MER, XBAL costs about 20 bps. VBAL is 41% Canadian content, XBAL is about 45%. XBAL has outperformed for the last 3 and 5 years.
Trending higher above the 200-day MA, which itself is moving higher. Watch it in terms of how far the valuation goes. Right now, 15x forward earnings with about a 13% growth rate for 2025, 29% for 2026. Valuation is actually not as expensive as a lot of other tech names, especially in the US. Valuation and technicals look decent.
Still likes it, beating all other streamers. One of the cheaper mega-cap stocks at just over 1x PEG. Brand-new high today. Getting closer to overbought in terms of technicals. You could try to add at the 50-day MA around $680-90; if you're really lucky, get it at the 200-day MA around $620. Ad revenue is helping on top and bottom lines.
Companion pets are a big thing. Growing need for protein from livestock. Above 200-day MA, but that's moving sideways. Trendlines are not fantastic. Trading at 31x, with 10% growth rate, PEG of 3, a bit expensive.
CCO is about 22% of the portfolio. Generally likes the sector. Rising demand for clean energy in most places around the world. Supply constraints, due to years of under-investment. Increasing government support. Some of the underlying names are getting pricey, look for a correction. Paying 99 bps for HURA. US version, URA, is a bit cheaper.
CCO is about 22% of the portfolio. Generally likes the sector. Rising demand for clean energy in most places around the world. Supply constraints, due to years of under-investment. Increasing government support. Some of the underlying names are getting pricey, look for a correction. Paying 99 bps for HURA. US version, URA, is a bit cheaper.
Designs chips, makes blueprints, and licenses technologies. Other companies actually produce. Lots of devices, especially mobile, use their tech. Trades at 90x forward PE, 24-25% growth rate. Trades at 37x price to sales. Bit rich for him.
Getting very selective. He's trimming as things have gone up, but not exactly lightening up.