Latest Stock Buy or Sell? Make More Informed Decisions!

Markets. Canada needs to diversify instead of exporting 70% to the US. Keystone XL is a good example. The acquisition of COS-T could be the first of several cases of the guys with big balance sheets coming in to acquire something in the energy sector.

Momentum ETFs. E.g. First Asset Momentum ETFs. He mentions those that make up the majority of the market. He is not a momentum guy so these don’t appeal to him. He feels these are excellent momentum ETFs.

There is talk of the US government going after drug companies that they feel are gouging. The stocks went down. He feels there is more downward movement to go. He looks at last year’s lows as a guide to how low it could go.

Governments around the world are fiscally constrained. We are back to multi year lows. He starts to get interested from a value perspective. We could look for a trading rally, but that’s all.

QE4? He thinks the Fed WILL raise interest rates and one raise is priced into the markets. He thinks they will do half moves. They want to get off zero and they want to test it. Probably sometime next year.

The premiums in these stocks that pay these reasonable dividends are massive. Money has been attracted to these. He does not like to own them.

With the acquisition of COS-T, covered calls won’t benefit after a certain debt. The takeover will probably not benefit an ETF with a covered call.

In flows and Out flows of ETFs. E.g. SPY-N, being the largest in the world. Market Makers can liquidate units, or create more, so there does not have to be a balance of buyers and sellers of the ETFs.

Markets. Timing of any Fed rate increase, slowdown of China and emerging markets, and valuation have been plaguing markets all year. There is a relief rally on feelings that a rate increase has moved further out based on numbers released. When he sees opportunities he steps in, but recommends investors keep something on the sidelines. Value is appearing in US large cap tech, European financials and Japan. He thinks China is a value trap and it is too early to step in. There is no question that stronger players use opportunities such as in our energy sector to do M & A.

Trucks and supply chain management. They have a fair bit of debt. They have made money over the years, though. They are in a bit of an upswing, but he stays away from cyclical companies with a lot of debt.

Real Estate or REIT valuation. The sector has been buoyed by low interest rates. It will feel pain as rates start to rise. He has been watching what they pay for acquisitions. It will be hard to deliver long term value to investors.

They have done a great job. They are rock solid and pay a decent dividend. It is a well managed business. It is owned by a dual class share structured company. He doesn’t like this. The other lifecos in Canada also have much better global operations.

If you want to hold cash, you need maximum liquidity. You will earn next to nothing. Don’t park it in something for a short term that is conservative. He thinks there is enough volatility that there will be plenty of opportunities to spend his money.

People buying this are looking for a dividend yield. It is less sensitive to oil prices than interest rate increases. They are paying out what they are earning.

A well managed company, but trading where it is strictly for the dividend yield. They have not increased earnings over the last decade or so. As rates start to rise one day, these utilities are going to suffer.