Latest Stock Buy or Sell? Make More Informed Decisions!

Markets. Trump is ahead of Hillary according to weekend polls. We will see after this week if Hillary is still gaining momentum. The majority of earnings on the S&P will be in by the end of this week and they are better than expected. There is a lot of potential for growth over the next couple of quarters, but there is also room for disappointment. He is worried about a correction up to 20% over the next 6 months.

He likes the covered call overlay and yield around 7%. He does not like the risk in Europe, but it is lower than North America. It is a diversifier from Canadian and US dividend holdings. He would not buy it here. He would lighten up. He would buy it back on a pullback.

US Stocks and Bonds. Caller is 75% US. The world is a little over 50% US. He likes being overweight in the US, but he would like to hedge against the currency risk. You can also be overweight Canada to get the dividend tax credit. He would be looking to trim the US exposure.

Fracking is still going to continue, but they are leveraged to the price of oil. There is a massive glut in unleaded gas. CFW-T should retrace almost to the February lows earlier this year.

Canadian Banks. He would start liking them 10% lower. We are at the upper end of the trading range. He would hold through ZWB-T, but when it got 10% lower.

This is non-leveraged. It would lose only a half to one percent over a year due to rebalancing. He uses it.

ETFs vs. individual stocks. The biggest difference is diversification.

4.9% yield. Holds exposure to a high yield index so you get a high yield return. There are risks. It is very similar to the volatility of the market.

Educational Segment. Concerns about the weekend’s G20 meeting. They are agreeing to continue spending and not worrying about who is going to pay for it. We need the growth pickup in the world, but the problem is the debt getting bigger. 150% of the world’s GDP has come from debt since the Lehman moment. You can’t stimulate by weakening your currency, but that is what they are doing. Infrastructure ETFs are very expensive right now.

Markets. Valuations in the US are rather high and that is caused by ‘free money’ and bonds that pay no money. He finds potential in the perpetual preferred market. You get premium yields and if rates don’t go up any time soon you don’t get hurt by them.

He would play a gas producer for a gas bounce back (ARX-T). KMI-N is a pipeline company mostly and they had financial issues, which scares him. It is a turnaround story.

Pipelines have been good performers lately because of the search for yield. They all got hurt in the early part of this year. These stocks will probably stay higher for longer than people expect.

Continue to hold it, but you may not make any money in the short term. The problem is that with the fuel prices being so low, there is less incentive to upgrade airline fleets to get more efficient equipment.

Everyone is in love with it because of what it did in the past. There have been only moderate innovations since Steve Jobs passed away. He does not see where future growth is going to come from.

He is a long term holder. It is a growth utility. Extremely well run conservative company. The valuation is higher than it has ever been before. They do nice, big acquisitions, diversifying them away from the east coast markets they are in.