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COMMENT
Extreme caution in this market? Yes. The way things are shaping up, we’re seeing a monetary shift. We can’t borrow any more. 1930s provides a great parallel to what’s going on now. US election is important. The Republicans will win and consolidate Trump’s power. He needs to devalue the US dollar to make America great. The king in the chess game is gold, as it’s the ultimate form of money when currencies stop working. As soon as rates went over 3.20%, saw market volatility. After November elections, we’ll have greater direction.
COMMENT
Market environment similar to 1930s? We’re in a credit cycle. Since 2000, we’ve had internet and housing bubbles. Fed is continuing to pull money out of the system. When the mechanics stop working, we’re going to get a reversal. The credit analysts are calling for caution because debt is the elephant in the room.
BUY
Buy or stay away? Likes the pipelines for the dividend and they’re monopolies. Pension funds are starting to get nervous and raise cash. With the selling, the dividend yield goes up. At some point, he’ll start adding. When cheap money dries up, fracking will reduce, and this will benefit Canadian energy.
oil
gas pipelines
BUY
Massive disconnect as to true value of gold. One of the most solid names you can own. Don’t be concerned with the price, because you’re buying insurance. Most conservative of the sector. It’s gold, oil, and other assets. At this price, it’s a gift. One of the few precious metals companies with a dividend. 10-20% of investable assets should be in solid precious metals, and he would recommend this name.
precious metals
COMMENT
Have REITs seen the worst with rising rates? No. His strategy is to underweight the sectors he owns, and have cash set aside for worse times ahead. Has more foreign REITs, expecting greater yields going forward. Wants to wait and see how rising interest rates will affect them. Rental REITs will benefit.
DON'T BUY
