David Burrows

We have been in a reflationary environment which is turning into an inflationary one. Inflation erodes purchasing power. You can go to cash but need to own assets that will offset inflation. Commodities are moving into a new structural bull market. Investors are underweight materials and energy. It will take a while for them to re-position. The energy index was down 90% from 2014 to 2020. Could see a pullback but a year to 18 months from now prices should be quite a bit higher for metals and energy. Inflation and higher interest rates will discount future earnings which affects techs, health care and consumer stocks which do well in a dis-inflationary environment. This could go on for a period of time.

The industrial group as a whole is under pressure. ROK broke its 200 day moving average at $305 and he is stepping away. The only industrial stocks are defense companies.

Question was on effects of sanctions and Morgan Stanley in particular. MS not being that affected by sanctions but is in an environment where capital market and investment banks are being impacted more than super regionals and regional banks.

It was a top pick two months ago. It is in the agricultural space, a strong group with some influence coming from the Ukraine/Russia conflict. There is a shortage coming in the fertilizer market and Nutrien is a leader in this space with dividend growth and upgraded earnings estimates. Stay with it as part of the hold your winners theme.

Was one of top picks a few weeks ago. There is a great demand for its products such as making systems for submarines and combat systems for some European allies. It is inflation protected since the contracts are cost plus. Own it for the long term.

The question was on gold. It needed a technical set-up and has consolidated in the past year and a half. Now the upside in gold and silver is significantly higher and shares could go 50 to 100% higher in the next two or three years, along with other commodities.

It is a good company but he is not ready to buy yet. Stocks related to housing did well until December but rates going up will affect housing. It is a secular growth stock and is good for the dividend.

The issue is similar to Morgan Stanley. Investment banking has been affected by the latest trends which include fewer IPO's and less M&A. Wait for the correction to settle.

(A Top Pick Mar 11/21, Down 29%) Great company in the auto parts and auto assembly space. They stopped out at $93 in June. There are supply chain problems in the auto industry and higher oi prices will also put pressure on this sector.

(A Top Pick Mar 11/21, Up 4%) They build entry level housing. Be careful with stocks related to the housing industry due to rising interest rates which will affect mortgages etc.. They stopped out at $72 in January.

(A Top Pick Mar 11/21, Up 48%) Used by gold and silver companies and expanding into copper. Exploration companies are paying higher day rates for rigs. Gold and silver and base metals have just broken out of technical consolidation and MDI is a beneficiary of expanded gold and silver exploration. It has good earnings which are rising.

Auto stocks are out of favour. High gas prices are not good for buying cars and there are supply chain troubles. Wait for the auto sector to get a footing.

It has lagged a strong sector so not a good one to buy. If you want the sector try OIH or XES.

They are underweight in tech with only a 4% holding. Cisco is trading below its 50 and 200 day moving average. It is a great company but wait for a tech turnaround.

It has had a sharp run-up and is doing well. It consolidated in past six months and broke out again. There is still upside ahead.