Latest Stock Buy or Sell? Make More Informed Decisions!
Today, Larry Berman CFA, CMT, CTA and Tyler Mordy commented about whether VNM, EWY, ASHR, VCN.TO, HXX.TO, XEI.TO, CDZ.TO, HCN.TO, GLD, DBO, XRE.TO, XGRO.TO, XBAL.TO, HGM.TO, ZJO.TO, KWEB, XLK, EWL, ETHI.TO, XSU.TO, ZWE.TO, BIL, ZBK.TO, MOON, IWM, WJA.TO, ZCN.TO, HHL.TO are stocks to buy or sell.
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N/A
Market. The world expected a US/China deal and it was priced in. Now you have to cut about a third or a half of the rally since December. There is some support around 2810 on the S&P but not a lot of support below that. There is more risk than reward in the markets here. There is no potential deal here in the next days or weeks in his mind. Intellectual property rights are going to be the most difficult issue in the negotiations. The airline industry is a capital intensive industry that does not make a lot of money. WestJet is cheap relative to a lot of other players in the sector. A corporate raider is trying to come in to fix things up.
Larry Berman CFA, CMT, CTAUnknown
COMMENT
A yield of almost 9% and almost all a return of capital? There will be negative impacts on the US healthcare sector. The covered call strategy yields a return as a capital gain. He deferred the callers's question to the manager of the ETF. He thinks this is a good way to get yield in this sector if this is what you want.
E.T.F.'s
PARTIAL SELL
There is some market risk in the overall market. It is an all cash deal. You will get $31 for it. There is a 4% difference between market and the deal. If you can do better than 4% somewhere else with a similar degree of risk, then you should sell. He would take some money off the table.
Transportation
DON'T BUY
BitCoin's future. He thinks it is worth basically zero. You can trade it. You can speculate on it. You can't invest in it, however. One of the solutions in the world to debt is to move to entirely electronic currency. There cannot be independent currencies. Governments will legislate them away. It is an asset and he has no issue with buying it, but it has no value.
N/A
Educational Segment. The income statement looks good but the balance sheet does not. There is $7 trillion dollars of corporate debt rated as triple B. 2000 companies. In the next economic downturn, a huge portion of the capital in triple B will move to double B. Look at HYG-N, the high yield bond ETF. The spread over government bonds is expanding quickly. If you are in high yield bonds, beware. This is the biggest risk he has ever seen in them.
Larry Berman CFA, CMT, CTAUnknown
N/A
Market. There is a lot of commotion in the markets right now. Beware of headline risk. Separate the short term headlines from the long term story about China. The domestic policy in China is more important than trade wars. China started reflating in the middle of last year and it is now showing in the data. The more trade wars flare up, the more China stimulates. It is very positive. China is moving from an export-led economy to a consumer led economy. Investors should not get sideswiped by the trade wars. China should be speeding up in the coming months. The Chinese consumer is the biggest macro story of our time.
Tyler MordyUnknown
BUY
The financial sector in the US has been unloved. But they are not the same as in 2007. They are not exposed to sub-prime debt and are more regulated. They are trading at good multiples. He uses XLF-N to play the banks. Everyone has rushed into bond funds but he thinks that has been overdone. ZBK-T is a wonderful way to play the correction to the overdone movement into bonds.
E.T.F.'s
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