Stan Wong

Stocks in the semiconductor and memory spaces are high beta. You're going to have major moves upwards, and then major pullbacks as investors take profits. There's a bit of fear currently in the marketplace.

Still sees the needs for data-centre capacity, with forecasts in the US quadrupling by 2030. Still sees major spending by the hyperscalers, so semiconductors and others will be major beneficiaries.

The AI story isn't over by any means, and it's not stalled. It's just normal profit-taking.

Looking back to 1950, on average we see about a 17.5% market drawdown in the year of a midterm election. In March, we had about a 9-10% drawdown. It could be that was it, or we could see a bit of renewed volatility going into the elections.

Because we've had such a great second quarter, it wouldn't surprise him if markets paused a bit.

Oil prices being much lower than where they were is important. Need to watch out for inflation and whether it remains sticky. Earnings are very strong, and that's helping markets quite a bit.

US cash on the sidelines is at record highs again. Some of that cash can rotate back into equities or other risk assets and help prop up markets again.

Oil prices being much lower than where they were is important. Need to watch out for inflation and whether it remains sticky. Earnings are very strong, and that's helping markets quite a bit.

US cash on the sidelines is at record highs again. Some of that cash can rotate back into equities or other risk assets and help prop up markets again.

200-day MA starting to trend a bit lower, price is also below that. High multiple at 60x forward PE, though growth rate is strong, but PEG a bit rich at around 2x. Leaves little room for error. Caters to economically sensitive small-middle companies. AI is both opportunity and risk.

Better opportunities elsewhere.

Both are looking for growth down the road and watching expenses. In the immediate future, earnings growth for both looks fairly benign -- below 5% in both cases. Interest rates in Canada could potentially move higher later this year, which doesn't bode well for the high-dividend payers.

Both are below their 200-day MAs. You want to put your $$ where it makes the most sense, and he's not sure telcos are that place right now. He owns no telcos.

Both are looking for growth down the road and watching expenses. In the immediate future, earnings growth for both looks fairly benign -- below 5% in both cases. Interest rates in Canada could potentially move higher later this year, which doesn't bode well for the high-dividend payers.

Both are below their 200-day MAs. You want to put your $$ where it makes the most sense, and he's not sure telcos are that place right now. He owns no telcos.

Very tax efficient, as you're getting the dividend from the stocks plus the covered call premium overlay on top (typically a return of capital, so it's really a deferred capital gain). You can hold them within an RRSP or TFSA, but the tax efficiency obviously works well for non-registered accounts.

The question then becomes whether you should hold covered call strategies? The providers always highlight the tremendous yields. But when you start stacking them against the underlying securities, you're better off holding the underlying securities more often than not. As the options get struck, you miss out on the upside.

If you need income, and that's the most important thing for you, then covered call strategies can make sense. But don't get lured by the high, fantastic yield being promoted.

A lot of oil companies have fallen since the highs of March/April. He added a new, integrated name (CNQ) just this morning -- chart's more attractive, price bouncing off 200-day MA. CNQ is higher quality than CVE.

CVE is not quite there yet, as it's closing in on its 100-day MA.

A lot of oil companies have fallen since the highs of March/April. He added just this morning -- chart's attractive, price bouncing off 200-day MA. 

A lot of oil companies have fallen since the highs of March/April. Likes this name.

A lot of oil companies have fallen since the highs of March/April. Likes this name.

High quality, management's done well over the years. At 8x forward PE, or 1.4x price to book, valuation is reasonable but no longer a discount. So stock's going sideways, investors have lost some interest. 200-day MA starting to tilt lower, price is above that but starting to go below. 

Much depends on how well it can execute on acquisitions. A lot of the easy $$ has already been made. He'd be on the sidelines for now.

Technical structure looks muted. Stock's below 200-day MA, which has started to move lower. Trades at 30x PE, for 13% growth -- a more than 2x PEG ratio. Bit expensive for him. 2027 guidance is modest, in single digits.