Today, Lyle Stein and Paul Harris, CFA commented about whether FSV-T, DLTR-Q, BAC-N, TEVA-N, TD-T, LYG-N, BCE-T, BBD.B-T, CNR-T, MFC-T, ENB-T, ACQ-T, BX-N, BMW-GR, DIS-N, LNR-T, C-N, IBM-N, CSCO-Q, TCN-T, HBM-T, ENB-T, RY-T, G-T, CHR-T, CGX-T, QSR-T, OTEX-T, CNR-T, HSE-T, PSK-T, TD-T, BCE-T, TV-T, VET-T, HLF-T, EMA-T, CM-T are stocks to buy or sell.
A gold bullion EFT will give you gold exposure but a gold stock gives you gold leverage and possibly financial leverage. G-T used to be the darling. They had some hiccups and are now having to build street credibility, but the fix is in. He owns AEM-T. G-T would be his second choice of a name. He is looking for more clarity from G-T. He thinks this will be a name people will go to because it is an under owned name.
Market Outlook. The market is adjusting to a bunch of different things. 2017 was a year when there were political reasons to be worry about as opposed to economic reasons. 2018 brings a confluence of different thinks. The Fed raising rates. This idea of inflation is coming back. Yields going higher. His view is that we are going to see a bumpy road but with global growth and inflation is being controlled. So that bodes well for the stock market. Low inflation, reasonable global growth, good top line growth and bottom line growth. There are good quality earnings coming out. In the long run, the stock market goes up or down because of earnings profile of companies. The current level of P/E for the S&P500 at 16 is higher than normal but not bubble or anything like that. The volatility can be your friend to find good opportunities. The fact that the 10-year yield moved over 3% doesn’t really matter in the big scheme of things.
(A Top Pick March 8/17 - Up 8%.) The largest private equity company in the world. Has a great dividend yield. A great story. They are not a corporation therefore not on the S&P 500. With the tax changes there are rumors that they will become a corporation and be part of the index and would get a bump.
It has a nice yield. They needed capital when they fell. They got a loan from FFT-T. He likes the business model. They make good margins flying old BBD.B-T planes. He recently bought it in an income fund because it has such a good yield.