N/A
Bank of Canada will raise rates (70-80% likely) according to the market. It is the right thing to do for Canada. There is some adversity because of Europe. Inflation is running at the high end of several bankers’ estimates. Real Estate values are increasing due to low rates and raising rates may be to head off a bubble. He is cautious for the last few weeks. Thinking about when to toe into the water. He will be slow to deploy.
DON'T BUY
Efficient way to get exposure to commodities in Agriculture. May not be the best way to get exposure to the underlying equities. Not sure the theme is really working. You were to benefit from middle class demand in developing countries for food.
BUY
US high yield bonds traded in Canadian dollars. Hybrid between bonds and equities. You have to be prepared to ride with the volatility. There is credit risk. Structured to pay dividends as capital or return of capital, unlike XHY.
BUY
US high yield bonds traded in Canadian dollars. Hybrid between bonds and equities. You have to be prepared to ride with the volatility. There is credit risk. Distributions are flow through and taxed as income.
DON'T BUY
Global integrated. Good exposure to state of market. It is a name you could look at as a proxy for the sector. Risk is resource replacement. They will be less penalized that other names for offshore drilling. Unless there is a strong reason to get exposure to a particular name, he prefers an ETF.
DON'T BUY
Poster child of the challenges of investing in commodities. Pretty brutal chart. Has to buy and sell futures.
TOP PICK
Quality equity play as much as an income play. Very strong track record for manager. Risk is that it is an equity ETF and subject to vagaries of the market.
TOP PICK
Junk bonds. Manager is a very strong manager of very high yield bonds. Macro outlook is very often bank on. Risk is defaults and credit spread widening. It is a long and short strategy.
TOP PICK
ETF. Place to put low risk US cash. Safe in the face of potentially rising inflation. Real return bonds. It is a product he would like in Canada. Risk is Interest rates rising without inflation.
PAST TOP PICK
PAST TOP PICK
(Top pick Jun 02/09)
DON'T BUY
Seasonal strength is from end of November until end of April. It did not follow the trend this year. Has not been acting well at all. It broke a key support level recently (down) and will have difficulty moving above that range.
SELL ON STRENGTH
Hit very badly. Seasonal from End of November until end of April. Nickel price have come down and brought the stock down. It’s also sensitive to oil and that came down.
SELL ON STRENGTH
Technicals are similar to other bank stocks. Sector does well from end of January to end of May. There were technical sell signals recently. Technically there is support around here. Psychology is that we have had the run for the year.
SELL ON STRENGTH
Moves higher from end of November until end of April. There was a huge run then it peaked around April. Follows China Index.