Stan Wong

What a year it's been last week ;)  Lots of volatility out there, but we've seen this before. Right now, we can't call it a bear market or a bull market. It's more like a "kangaroo" market with all the bouncing around. 

Uncertainty breeds volatility. But for long-term investors, volatility creates opportunity and we're seeing that at this stage. No one really knows where the bottom is. But if you're investing for the long term or for the next 12- 24 months, investors will probably be pretty pleased with the investment decisions they make today. We saw it in 2008 with the great financial crisis, and in 2018 with the US-China trade war. With the Covid crash, we ended the year at all-time highs.

It's all about patience, not panic. That's what will help in the long run.

His portfolios are more weighted towards the US. He also looks at international markets for the valuation discount. Without talking about tariffs, the US market has much more depth and choice than the Canadian one. 

US economy is very resilient. Inflation numbers have come down a bit which is good news, and unemployment is still near multi-decade lows. Consumer is still very strong, and the US consumer is 70% of GDP in the US. As long as that consumer remains strong, that will continue to help the market. 

Of course, tariffs will affect the consumer. Looking 6-12 months out, we have to ask whether tariffs will look like they do today? Remember that what they looked like a week ago changed 5-6 days later. 

Also have to consider that US mid-terms are coming up next year. The trade stance could soften. It already softened yesterday. We can see fiscal support from the US government. We may see more tax cuts and deregulation, which would help the economy. 

Sentiment has been so tough. The VIX went up above 45 and hit 60. If you look at the stats going back to 1980, typically when you go over 45 on the VIX, the 12-month return for the S&P is 37% on average.

Probably don't want to buy it today. Concerned with valuation of 34x forward PE for 7% growth. Makes for a high PEG ratio at 5. Trading at 200-day MA, so could be some support there for a trade. Low beta, will do well in an economic downturn as grocery is such a big part of its business. E-commerce is improving. Intense competition.

Recently sold. PEG ratio just got too high.

Both are great examples of an ETF with Canadian names. Between 4.9-5.3% dividend yield. VDY has more banking exposure, so it depends on how much concentration you want in the Canadian banks. 

Both are great examples of an ETF with Canadian names. Between 4.9-5.3% dividend yield. VDY has more banking exposure, so it depends on how much concentration you want in the Canadian banks. 

Solid ETF dividend strategy with US names.

Solid ETF dividend strategy with US names.

Valuation is 61x forward PE with 25% growth, giving a PEG ratio of well over 2x. 200-week MA is trending lower, which is not a fantastic technical sign. Have to watch out for rivals such as AMZN and ETSY. Depends more on small-and mid-sized businesses, which can be affected more by any economic downturn.

Trading ~17x forward PE with 14% growth rate, so not a bad valuation compared to other tech names. Tepid guidance brought stock down. Below 200-week MA, which is moving lower as well, not great signs. 

He sold off a bunch of energy names, but retained this one. Concerns about global recession is hitting energy names. He's in the camp of too early to think about a recession, and tariffs will look very different 6-12 months from now. If we see there's no recession, things can turn around quickly.

200-day and 200-week MAs still moving higher, a good sign. Right at 200-week MA today, and that can be massive long-term support for most stocks. If you own, don't sell. If wanting to buy, this might be your chance to look at it. Yield is 5%.

Good question whether consumers would spend less for online gaming during a slowdown. Probably, but he feels demand is somewhat inelastic. Share price up and down, lots of volatility. Dropped below 200-day, but now picked back up. 200-week MA moving higher. Doesn't look bad from technical perspective. 

Valuation not cheap, but you're buying it for the growth rate, which is 33% going forward. Online gaming is a growing industry. Higher beta, so a very small position only in your portfolio.

Trailing PE is 23x, forward is 19x. Many studies show that a PE level is not a really great determinant of an index's investment return going forward. What's more important is earnings growth. Right now, still sees high-single or low-double-digit earnings growth for the S&P 500.

The S&P 500 is quite concentrated. Not a great diversified strategy. Top 10 names are 30% of the index. Tech + communications + consumer discretionary make up close to 50% of the index. Those 3 sectors have been the worst performers so far this year. See his Top Picks.