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Stan Wong
Director & Portfolio Manager at Private Wealth Management, ScotiaMcleod
Member since: Jun '09 · 3268 Opinions
Rating Card
| All | 
Rating
| 
Big Win
| 
Win
| 
Neutral
| 
Loss
| 
Big Loss
|  |
|---|---|---|---|---|---|---|---|
| 4.83 | 239 24.02% | 262 26.33% | 170 17.09% | 220 22.11% | 104 10.45% | ||
| 1 Month | 4.74 | 7 2.90% | 76 31.54% | 91 37.76% | 65 26.97% | 2 0.83% | |
| 6 Months | 5 | 42 18.03% | 79 33.91% | 43 18.45% | 57 24.46% | 12 5.15% | |
| 12 Months | 5 | 63 28.77% | 56 25.57% | 17 7.76% | 51 23.29% | 32 14.61% | |
| 2 Years | 4.96 | 71 37.97% | 38 20.32% | 16 8.56% | 33 17.65% | 29 15.51% | |
| 5 Years | 4.46 | 56 48.70% | 13 11.30% | 3 2.61% | 14 12.17% | 29 25.22% |
Stock Opinions by Stan Wong
It seems that good news is now bad news, with ISM numbers being a bit stronger. Now there's concern about rates potentially not coming down as quickly as we'd hoped. Rates can stay higher for longer, and inflation might be a bit sticky, but we're still far away from the 9% inflation we had a couple of years ago.
We're really in a Goldilocks-phase type of economy in the US. Steady GDP, with inflation relatively easing or stable, and consumer sentiment remaining pretty steady. Labour market still pretty stable as well. Earnings remain strong, and that's really the most important key.
Looking at 2025 and 2026, he sees ~12% earnings growth rate for the S&P 500. Mid-caps are even higher than that. Markets in NA, and in the US particularly, are primed to move higher again for the third consecutive year.
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We've reached $6.75T USD in money market assets. If interest rates continue to fall, that will provide even more support for equities and a buffer to the economy as well.
In the equity component of client portfolios, he's roughly 70% US stocks and 30% Canadian. The US component has increased over the last few years for obvious reasons, as US markets have done really well and the USD has moved forward too.
Given the political uncertainty in Canada, he wouldn't be surprised if the loonie remained weak around 69-70 cents or even lower. The interest rate differential between US and Canada points to further weakness in the loonie relative to the USD.
Exited NVO based on stop losses. Market had high expectations, and efficacy numbers came in weaker than anticipated, sold off. LLY is outperforming NVO at this point. NVO is a bit more leveraged to the weight-loss-management drugs, whereas LLY is more diversified.
LLY has strong technical indicators, with 200-week and 200-day MAs moving higher. Still shows strength within his quant screens. Trading at 35x forward PE, with 28-29% growth rate -- pretty impressive; PEG ratio rather low. Dropped below 200-day MA, but that might be temporary. Both names have beta, but likes them long term.
Exited NVO based on stop losses. Market had high expectations, and efficacy numbers came in weaker than anticipated, sold off. A great name, but he's out for the moment. LLY is outperforming NVO at this point. NVO is a bit more leveraged to the weight-loss-management drugs, whereas LLY is more diversified.
LLY has strong technical indicators, with 200-week and 200-day MAs moving higher. Still shows strength within his quant screens. Trading at 35x forward PE, with 28-29% growth rate -- pretty impressive; PEG ratio rather low. Dropped below 200-day MA, but that might be temporary. Both names have beta, but likes them long term.
Basket of high-dividend Canadian names. Both about 24-25% cumulative returns over the last 3 years.
XEI more diversified with 30% financials plus 30% in energy. Slightly better MER of 22 bps. Yield is ~5.5%.
ZDV is 38% financials and 20% energy, so might make sense if you really love financials. MER is 39 bps. Yield is 3.8%.
Basket of high-dividend Canadian names. Both about 24-25% cumulative returns over the last 3 years.
XEI more diversified with 30% financials plus 30% in energy. Slightly better MER of 22 bps. Yield is ~5.5%.
ZDV is 38% financials and 20% energy, so might make sense if you really love financials. MER is 39 bps. Yield is 3.8%.
Weak technicals. 200-day MA starting to slide sideways to slightly down. Trading below 200-day. Not exactly expensive at 29 forward PE, with pretty healthy growth rate. Higher beta at 1.2x the S&P 500.
Challenging to own REITs in Canada. The 5-year return is slightly negative, even including dividends. Some names in it make sense, some don't. Cumulative inflation has hurt REI.UN, the second-largest holding. Softness in Canadian economy.
5- and 10-year yields are moving higher, and REITs are very sensitive to higher rates because of their debt. REITs might make sense in a stronger economy, with rates moving down.
Looked weak fundamentally, but technicals overcame that. 200-day MA is pushing higher, 200-week averages are sort of flat but moving higher. Hold, with the yield close to 6%. Not a high-growth name, 7-8% earnings growth rate.
Auto parts could be impacted negatively by potential US tariffs. Rough technicals, 200-day MA very flat and moving down, with stock trading below that. 200-week MA also flat and starting to go down. PE always looks cheap, value trap.
Likes US financials, sector is underowned. Financials will benefit from US pro-business policies, less regulation, and more M&A activity. 200-day MA is going higher, and price is above that. 200-week MAs are starting to turn up.
See his Top Picks.
Trades at 18x PE, with 5% growth. He likes growth at a reasonable price, so 5% doesn't cut it. Stock's moved below 200-day MA, which is falling. Short-term technicals look weak. Demand for GLP-1 drugs will impact a lot of companies in the food business.
New highs recently. 200-day MA is moving higher, so is the 200-week. Clear trend of higher highs and higher lows. Still not expensive. Clear leader in Search, and other areas of its ecosystem make it a powerful company. 17% EPS growth at only 22-23x PE, so PEG ratio fairly attractive.
Good name to continue to own in the mega-cap tech space, as it's a space you have to be careful in.
