Latest Stock Buy or Sell? Make More Informed Decisions!

Markets. The last two January’s have been challenging. The January Barometer says that as goes January, so goes the whole year. It suggests that we get flat or negative returns for this year. You have to be active and rebalance to take the risk down a bit. When you do get the panic it should be an opportunity rather than a fear. This quarter’s earnings have come in so far much better than expected. Companies are taking down their expectations. The forward numbers coming down is a challenge for the markets. He does not think we get above 2000 on the S&P in the first half of this year. In oil, hedges roll off the books this year. There are too many unknowns to have confidence in the oil market. When we rally, take money off the table and then take advantage of dips. Energy is a very important catalyst for what happens for the remainder of the year. Japan has done stimulus for the last 17 years and has not fixed the problem for their aging demographic. Canada has a similar demographic challenge. The overlying challenge is the aging demographic. Interest rates may have to say low for decades because of this.

Equal rate REIT ETF. He has said for the last year and a half that they had downside risk, but now he is at maximum position in REITs in his dividend fund. In the last month or so he has been adding every time it has been getting weak. This is one of the ones he holds.

Healthcare stocks or ETFs. Generally healthcare does not pay a huge dividend. You have to be careful. CSH.UN-T is not diversified enough. He would like a wider perspective to healthcare. A global healthcare ETF would be great, but you have to buy it in the US and take the currency risk. Some ETFs with good returns are returning your own capital to you.

It is a balance income fund. It includes bonds. It is good for a long term holding. It is a nice diversified way to get exposure across the sector, but is concentrated in Canada. Combine it with CYH-T.

Euro. Covered call and hedged to CAD$. This was one of Larry’s ideas. He loves it for the principals.

Fixed income. The entire bond world after inflation and tax is negative. It is a bad investment. But don’t replace it with equities and dividends. When markets sell off, you should up your equity exposure.

Gold. Every time gold has made a lower low, it has been the primary trend. We have not seen a higher high. If interest rates stay low for the next decade or two, it will peak in failed rallies. Buy into dips and sell afterwards, but as a long term investor it is not time to invest yet.

US Banks. If you made it 5% of you position, then don’t average down and buy more. It is a bad idea to buy more. If you hold less than a position then you could buy it. It will be in a trading range for the next couple of years.

Educational Segment. Dollar cost averaging. For the average person, if you are smart, you can make informed decisions beyond dollar cost averaging. But don’t just invest on the month end. He looked at the VIX index. He took a rating of -1.57, and said put that same money in the market when it declines that much. This is Smart Dollar Cost Averaging. -1.57 is based on volatility and this is the moment you need to invest. You don’t know whether to do it at the close or the next morning but he prefers the afternoon of the day of that volatility.

Markets. Slowing global growth is an opportunity for Canadians. We are famous for resources, but it is not a good time to be in many of those sectors. The good news is that if you are in industrials or technologies you can do well in this market and in this economy. Food will be under constant demand. If you are just going to buy the index, you are better in the US. The CAD$ has been under huge pressure rallying just below $0.69 and has probably bottomed here. Canada is probably the only tradable petro-currency in the world.

It is well documented and under a lot of pressure. It should stay in the index. It will be helpful to the company when or if it has a turn around. He does not own it because of debt. They may get things turned around.

You have a lot going on with energy stocks. The juniors are the most down. He would prefer companies with a little more capitalization. Energy is not a renewable resource. It is not recyclable. These Nat gas and Oil prices are under a huge amount of pressure and at some point something has to click in. You will see a plateau somewhere. You don’t have to worry about ECA-T going out of business.

GWO-T is worth considering also. Life Companies. They are big beneficiaries if and when interest rates go up. Future liabilities are discounted more in an increasing interest rate environment. He prefers Great West Life.

The banks have been the dominant performers in the financial sectors. SLF-T has been under a lot of pressure along with the banks because of fears of exposure to the oil patch. LifeCos tend to do much better in a rising market because of their wealth management business. Insurance companies have been competing longer abroad than the banks.

One of North America’s largest distributors of renovation lumber. You won’t be too disappointed six months or a year from now. This is a correction.