Today, Larry Berman CFA, CMT, CTA and Bruce Campbell (1) commented about whether POU-T, PD-T, EFN-T, CNQ-T, ECA-T, HR.UN-T, HCG-T, BTE-T, AX.UN-T, TECK.B-T, S-T, ZEN-X, BMO-T, STB-T, SC-T, RLC-T, TA-T, FTS-T, WSP-T, REI.UN-T, BAC-N, CPG-T, ABX-T, ERF-T, WPM-T, NPI-T, BXE-T, CNR-T, TD-T, MFC-T, VGK-N, MG-T, CNQ-T, ZWA-T, DGC-T are stocks to buy or sell.
Educational Segment. Bonds. Canadian investors with fixed income in portfolios. Looking back to May of this year when they first started talking of tapering. 2.82% was the peak rate in the summer. If we start to see bonds break higher it would be meaningful. 3.5 would be the next place US bond yields would go to (3.25 in Canada). CBO-T is down 2%. ZCS-T has a small total return but a small price loss. Broad US bond market would be down since May because the CAD$ has declined. XLB-N is the worst performer, long government bonds.
Markets. Not much further multiple growth. Canada will be about the same as the US. He will be a bit more of a stock picker next year. You are looking for a combination of growth with some growth. You can’t buy yield for yield’s sake. Banks are a good example. In 2014, sectors to do better are financials, tech, health care. Energy has been a real laggard.
Markets. 30% surveyed think that the Fed could taper this meeting, but he does not think so. Debt ceiling is still a mid-Jan to Feb event. They don’t want to shut down the government again. He thinks actually March is more likely when they talk tapering again. Copper is at a 6 week high but it’s not relatively high right now, considering long term. Not sure if it means anything. Doesn’t think China is taking off in any way. German numbers were good, France was weaker but Europe was better overall. 2014 will be interesting to see if interest rates can go up and the economy still recovers.