Today, Larry Berman CFA, CMT, CTA and Hap (Robert) Sneddon FCSI commented about whether OTEX-T, ERF-T, XBM-T, FTS-T, BNS-T, PXT-T, NA-T, V-N, BAM.A-T, LYG-N, XBM-T, IBB-Q, ALA-T, ITP-T, BAC-N, GE-N, JPM-N, BCE-T, CM-T, AD-T, LB-T, TECK.B-T, MEG-T, HBM-T, VCNS-T, VBAL-T, VGRO-T, ZWU-T are stocks to buy or sell.
VGRO-T vs. VBAL-T vs. VCNS-T. Would the three be enough for a retirement portfolio? VGRO-T is 80% equity, 20% bonds; VBAL-T is 60% equity, 40% bonds; and VCNS-T is 40% equity, 60% bonds. Don't hold them together. They hold the same thing at different proportions and equate to VBAL-T if all held equally. Move between them as market conditions dictate.
VGRO-T vs. VBAL-T vs. VCNS-T. Would the three be enough for a retirement portfolio? VGRO-T is 80% equity, 20% bonds; VBAL-T is 60% equity, 40% bonds; and VCNS-T is 40% equity, 60% bonds. Don't hold them together. They hold the same thing at different proportions and equate to VBAL-T if all held equally. Move between them as market conditions dictate.
VGRO-T vs. VBAL-T vs. VCNS-T. Would the three be enough for a retirement portfolio? VGRO-T is 80% equity, 20% bonds; VBAL-T is 60% equity, 40% bonds; and VCNS-T is 40% equity, 60% bonds. Don't hold them together. They hold the same thing at different proportions and equate to VBAL-T if all held equally. Move between them as market conditions dictate.
Educational Segment. You do a disservice if you just hold to an asset class mix. Interest rates won't go up much more any time soon. The recent market bottom was right about Brexit in terms of timeframe. Maybe people are calling for the end of the bond bull, but he disagrees. Bond ETFs have made no money from 2016 to date except high risk bonds. He recommends floating rate bonds.
Market. The S&P index trend has not been violated. We typically get week about a week before the midterm elections. Some of Canada's macro numbers are down little bit, vs. the US. Normally there would have been a weakness to the US dollar in the summer but we did not have it. A down turn would be very positive to the rest of the world. The Chinese market has been a sinking ship this year. He'd like to see it hold in this base but it is not holding. A lot of non-US markets look like this. We want to see them catch the base of Jun'17. Otherwise there are bigger issues.
It plays into the interest rate issue. It will probably get sold with any bounce. There will be a downward bias. This is the one he would pick in this space, although he does not like the space, nor owns anything in it right now. Over the next year there could be good opportunities to pick these things up.
Market. It's October so we tend to get some volatility. There are issues with Chinese tariffs. He thinks it will get much larger before it get better. It is all part of the late cycle behavior. The tax cuts are a sugar coating that stimulates earnings. Current geopolitical risks are (1) Brexit deal uncertainty; (2) the Italian Budget; (3) Saudi Arabia / Middle East Tensions; and (4) Trade Wars.