Today, Rick Stuchberry commented about whether ING-N, CJ-T, WDC-Q, BCE-T, MFC-T, CPG-T, GM-N, MG-T, BABA-N, LYG-N, POW-T, SLF-T, T-T, FTS-T, WPM-T, SHOP-T, CSCO-Q, BDGI-T, SSRM-T, CCO-T, TEVA-N, BIP.UN-T, MIC-N, CM-T, SAN-N are stocks to buy or sell.
He doesn’t own any infrastructure stocks, but this one is good and has a good track record. Infrastructure stocks have been consistent performers. They have been yield stocks, but have been able to grow through it, and you want that combination. Infrastructure stocks do look better with Trump saying he is going to do a lot of stuff. Dividend yield of 6.2%.
This has really been spanked in the last 4-5 months, taking it down from $13-$14 to around $10, and it is now coming back. When watching some of the commodities, the recovery in some of them fits into the whole infrastructure buildout and fiscal policies. There is always demand for uranium, because all global reactors need to be refilled, and this company is the low cost one. At this price, you won’t hurt yourself, you just have to wait for materials to come back in again.
Economy. This has been a 35-year bull market and there are significant changes coming. A chart showing 30 year US government bond yields from 1981/1982 on showed a long decline in rates. We’ve just had 2 Fed hike rates, which means a lot in housing, because mortgage rates have gone down each time. For the last 4-5 years, a lot of people have been sitting with 3% mortgages. When they have to renew, they will probably be looking at higher rates. People should start to prepare for this. In the last 10 years, pensioners have taken it on the chin because they’ve been trying to get safety with yield to prevent erosion of capital. It hasn’t worked as yields have continued to trickle lower and lower. He wants to have yield, but also needs to have growth. The government would like to have more inflation and have been jamming rates down hoping to get it. On the other side, all this new technology, such as Uber and Amazon, is actually deflationary because costs are going down. The demand for commodities is not what it used to be. He is also using a “Progressive Value” approach, like a “growth of the reasonable price” system, and is looking for companies that are well valued, but with good growth prospects.