Wild volatility these days, so to stay focussed buy companies with good balance sheets and growing dividends--and now you get them on sale. As a general rule, the safest upside has been companies that make the components inside tech devices rather than the big tech companies themselves. FANG remains expensive despite the current pullback. There is a changing pyschology in the markets. Value stocks and telcos were popular post-recesssion. Today, it's growth. Trump is taking big swings, but is playhing Russian roulette with a trade war, which is dangerous. The voter base supporting Trump will now feel the pain of his tariffs and moves. There will be challenges to the Canadian housing market, and we'll definitely see the impact of rising interest rates.
(A Top Pick May 5/17, Down 9%) Over 15 years it's been fabulous and wishes he had bought it sooner. Their acquisition of 21st Century Fox will be a great play. Valuation is not expensive at 14x forward earnings. Has a long history of dividend hikes. Buy this on sale and put it away for a long thaul.
He once worked here. If there's a sell-off in EM, BNS may see some exposure. More importantly, rising interest rates are a worry, because Canadian consumers are levered to the gills. Also, how far will consumers accept high bank fees before pushing back? But this is fine, if you hold this for 3 or 4 years.
Canadian dollar 6-month outlook: In the past year, the Canadian dollar has been difficult to manage for investors. We'll likely see an interest rate rise here. The U.S. dollar should weaken as ours rises against other currencies like the Euro. If you're going on vacation, wait till the rate rise is done.