Latest Stock Buy or Sell? Make More Informed Decisions!

Market. He is in Florida for the 7^th year ‘Inside ETFs conference 2018’. It is the biggest and best in the world. The biggest theme so far is the idea of strategic vs. active ETF strategies. Strategic indexing has some exciting things coming down the pipeline. The government shutdown is not exciting to the investor. After 2 to 3 weeks we could have a pullback, however. Markets are plus on the day today. It is market noise at present. In Germany there are ongoing coalition talks. 6 weeks ago after the election there was no way and this shows you how vulnerable or flexible it is. Germany is probably not going to be as strong as it was in previous crises in the world.

Marijuana. If you are going to play the sector it is a momentum trade and the ETF is the way to go. The sector is tremendously ahead of itself and there is a lot of speculation in these stocks. We will not know for a year after it becomes legal, how these companies are going to do. You could get a lot of price volatility.

Where to Park. There is a ‘fear-of-missing-out’ trade. Canada is not the place to put your money at this point. Options might be one way to put your money to work. You can write a put on the S&P out 1 year to buy it 10% lower. You could take in a 2.5% yield while you wait. Or you could be patient and wait for opportunities to present themselves. ZWU-T which he talked about on the same show is another option for a third of your cash.

It is in the falling knife phase. It is a speculation and it could be time to dollar cost average. With the markets so strong right now, what will happen to this stock in the next recession. For the deep value investor it may be worth putting a percent or two into this.

Emerging Markets ETF Recommendation. It is hard to hedge the currency risk. Their interest rates are far higher than our markets and so the cost of hedging is very expensive. ZEM-T, XEM-T, or DEM-N for their dividend emerging markets ETF. EDIV-N is also a buy and he owns it. DJS-N might be something to look at also.

It is in all the portfolios he manages. It is pipelines, utilities and telcos. It is 70% Canadian / 30% US. They write covered calls to enhance yield to 6-6.5%. Because of all the yields carrying a lot of debt on their balance sheets it is very interest rate sensitive. You get a bit of a shock as they start to raise interest rates. It will stay in a trading range of $13 to $14.25 for some time. He has been nibbling for some time.

Downside risk from BMO Tactical Global Growth and BMO Tactical Global Dividend Fund. Two funds he manages for BMO. They are ETF asset allocation funds. Both are sitting with a beta of around 30-40%. When markets correct he would then expect better valuations in them but they get you through a bear market in pretty good shape relative to the broader markets.

Educational Segment. Active or Strategic Strategies. There is a Bitcoin ETF coming to the US but probably not this year. There is a BLOK-N ETF that is an actively managed block chain ETF. The top 5 stocks in the S&P 500 account for 12.7% of the entire weight of the S&P, which is the same as the bottom 245 stocks in that index. The top 50 stocks control 50% of the index movement. It is a concentrated index. Increasingly fewer and fewer of the stocks are controlling more and more of the market outlook. SPHD-N is a smart factor index taking the best 75 quality/highest dividend payers and then sub-selecting the lowest 15 volatility stocks within that. It gives you a smoother ride. You get double the yield of the S&P.

Market. Markets are at record highs. This can take ages to resolve itself. Canada is lagging big time. 100 years on the DOW is compounding at 5% and dividends are 3 of those 5 points. You can focus on dividends but you might want to focus on dividend growers. Acquirers may be able to grow dividends by acquisitions. Tax cuts in the US are a bullish argument. They are driving things but not the same for all companies. CSX-N and retail have rebounded substantially. There are pockets of decent value but the market is not cheap.

(A Top Pick Jan 3/17, Up 17%) It is 50% US and Canadian retail is really starting to kick in. They will take a hit in the upcoming quarter in the US and then have ongoing 2-3% higher earnings going forward on the tax cuts.

(A Top Pick Jan 3/17, Up 10%) You only have an analyst day when you have a lot to say. They have electric car charging station in Europe. People will still go into their convenience stores with electric cars becoming more popular.

(A Top Pick Jan 3/17, Down 51%) They have not done anything wrong except to be a natural gas producer. If you have a long enough horizon and want to stick in at what looks like the bottom you will be okay. There is not much downside from here.

It had a stumble in the third quarter with back-to-school. The floods really impacted them. 11-12 times earnings. There are big synergies in an acquisition they made. He is buying under $30. (Analysts’ target: $35).

They have 7-10 years of earnings and dividend growth. The stock should probably be $60, not $50. (Analysts’ target: $59).

50-60% Hong Kong plus international. Over a 5% dividend. You get 10% plus the dividend for a few years. You get diversified away from North America. (Analysts’ target: $43.96).