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COMMENT

Trump is preparing a new list of tariffs against China: Not the best news, obviously. Market reaction is muted. Meanwhile, corporate profits are starting to report strong Q2. Both the Canadian and U.S. economies are strong. He looks at the long-term, but in the short term anything can happen, sparked by the unknown. But you can't invest based on a looming trade war. TSX hit new highs today with oil as part of the catalyst. But over the past 10 years, the TSX has paid 3% compounded average returns, which is poor compared to the States. FAANG stocks continue to gush profits, drive the U.S. markets, but valuations are still reasonable.

Unknown
BUY

Is this time different for airlines? They've consolidated and they say they won't fight each other about capacity this time. Delta and the others look pretty good now. But rising oil prices forced Delta to issue guidance to limit expectations. This is trading at 8.5x earnings. He thinks this time is indeed different for the airlines. Delta generates a lot of money from its credit cards (air miles). Good dividend and they're buying back stock.

Transportation
COMMENT

It's gone nowhere the past few years, stretched from some acqusitions, and fears of e-cars. However, ATD is testing charging stations at its stations. Also, as long as people like junk food, ATD will do okay. He wishes he had bought this in the low-$50's.

food stores
BUY on WEAKNESS

They seem to be riding gaming, the Cloud, other software--all the right waves. If you want to run an office, you have to pay them to use their software or Cloud. An amazing company. The problem is the valuation has gotten ahead of itself
at 27x earnings. It's a new company. Kudos to the CEO. Ultimately, if you believe the Cloud is in its infancy, buy it--but at a 10% pullback.

computer software / processing
COMMENT

Market. Consensus forcecast for quarter’s earning season indicates about 20% earnings growth among S&P 500 companies, with top lines forecast to grow over 8%. With the strong employment growth and limited wage growth, the market should have surpassed the January highs but trade concerns are keeping it down. The economic data still indicate strong growth or expansion. They point to a second-quarter rebound in GDP growth compared to a softer Q1. Q1’s growth was about 2.2% partially because of weather. Forecasts for Q2 are in the range of 4 to 5%. Small business optimism is still near historical highs. It will be important to monitor earnings calls/reports for the impacts of tariffs on their business. High-growth companies have now grown to the point that their valuations are not attractive. However, companies that pulled back because of interest rate concerns are now looking better. The tariffs on raw materials will impact mnufacturing companies. Some companies are raising prices, others are holding prices for now, accepting lower margins. If that continues, there will be a permanent impact on earnings growth.

Unknown
COMMENT

Comment on Interest Rates. She commented on a previous show that it will affect dividend stock prices when US Treasury 10-year bonds offer 4% interest rates. She expects them to rise to this level within the next year and a half, as the economy improves. For dividend stocks, it is important to choose an attractive yield and a record of increasing their dividends.

Unknown
PARTIAL BUY

She has owned this for years. The long pullback has created a buying opportunity. There have been some good films, so box office receipts should improve. In addition, the company is diversifying the ways it delivers entertainment, with more interactive activities that are fun for families, and is increasing the dollars per customer visit. This will not be a very growth-oriented company until the diversification’s value kicks in. There is risk because the company is drawing on its credit to fund its diversification.

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