Today, Larry Berman CFA, CMT, CTA and John Zechner commented about whether TS.B-T, TCN-T, CS-T, BRK.B-N, BBD.B-T, TECK.B-T, BA-N, BA-T, CNR-T, MRU-T, ELD-T, JPM-N, MG-T, GM-N, OTEX-T, ABX-T, CPG-T, PRE-T, TLM-T, ECA-T, WCP-T, SCL-T, GE-N, S-T, SU-T, ATP-T, DGC-T, RUSL-N, BTE-T, CPG-T, TRZ-T are stocks to buy or sell.
Educational Segment. We are into the 29th month without a 10% correction- second longest rally ever. This rally is in the category of extreme extended range. Believes possibility of a 10-20% correction could play out. Review his ‘sleep at night’ portfolio. People should consult their advisors to see what they should do. ZUE is the S&P 500, up 45% and ZWA is up 18%, both since 2011 lows. ZWA is going to go down only about 70% of a correction, but you participate in any further rally. XIU vs. bonds has done much better but would be impacted much more by a pullback.
Markets. Ukraine crisis. The markets don’t like uncertainty and now that the referendum had a 97% result, the markets have rallied. Resource, energy and materials stocks are doing better these days. Likes industrials, techs and cyclicals also. In the copper market he is not worried about China stock piling it as a collateral and upsetting supply/demand dynamics. He has been adding copper stocks. Primarily he goes south for tech stocks. There are areas of the market that are in a bit of a bubble, but when you look at cyclicals in Canada, they are really trodden down.
3.5% dividend. You saw a pretty big move since the financial crisis. Not a screaming buy but you could hang on for the yield and for the spin out of the leasing business. Prefers Element Financial. Thinks you will get a better valuation if you split up the company. You aren’t getting paid to own these conglomerates any more.
A younger version of CPG-T. It is stalled out in the area for a while. With the deal they did today they double their oil production. He likes it in here and bought today. Likes the story. Don’t read much into the seasonality. 5.6% yield. Recently increased dividend to attract more investors. It is part of the attraction of the group.
Markets. Fed meets this week but it is probably a non-event. Thinks the upcoming meeting will be a status quo meeting. Slowing in January was probably weather-induced. The underlying economy is strong because money is cheap. Doesn’t think it can handle normal interest rates. We had a corporate default in China. DSUM-US is an ETF that shows this.