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Market. The threat of inflation is starting to be reflected in longer term bond yields. As rates begin to go up around the world, even in Japan, investors need to be wary. Cash is a good think to be holding right now. Rising stock markets and rising rates usually don’t go hand in hand. One needs to be careful as this is the second longest bull market in history – trees never grow to the sky.
Molson Coors investment in Marijuana. Beer companies participating in this new market makes sense to do it early he thinks. They are talking a totally new market and new beverage opportunity, which he thinks is more of an experiment on their part. He does not understand what a successful business model in the cannabis space is going to look like and the valuations are simply too high.
High Yield Bond Funds. Cash in a registered account should be invested in interest bearing instruments. Do not invest in Canadian only high yield bond funds as they tend to be highly commodity based and too risky. Look for a North American fund instead, which hedges the US currency risk out. An ETF also holds derivatives as well and have thus not tracked the indices as well.
They just paid $7 billion to have the right to distribute Starbucks coffee. They should be able to leverage this and do well by it. The entire consume sector has been a terribly performing sector as the power shift has moved to Costco and Amazon, who are now introducing their own brands. A totally world-class stock, but it too expensive to buy at these levels.
This is a solid company and dividend payer, but the stock prices has done nothing for a very long period of time. Two of the entities largest holdings are Investors Group and Great West Life. The mutual fund side is going through tough fee compression. He would not invest new capital here.
There recent earnings indicated their growth in subscribers is slowing. This is an example where the stock is priced for perfection – any slip up and the stock can plunge. Management has done an outstanding job to date. They are now spending on content and this impresses him how they remain profitable.
They are one of the largest pharma distributor in the US. Their recent acquisition is a plan to position the company in health management – helping companies send orders to pharmacies. The company is one they are looking into. The stock is trading at a reasonable valuation and it generates good cash flow. The debt load is not onerous. They are here to stay. (Analysts’ price target is $86)
The auto sector is dealing with the risks of tariffs. He would be surprised if tariffs actual come into being. This will never be a high P/E company, due to the low technical complexity of the business. If the market corrects, this may be a more defensive holding as it only trades near 10 times earnings already. (Analysts’ price target is $84)
