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Latest Stock Buy or Sell?

Today, Larry Berman CFA, CMT, CTA commented about whether QQQ-Q, ZQQ-T, ZHY-T are stocks to buy or sell.

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Market. He does not think there is anything more important going forward than the trade issues between the US and China. There is an important dinner meeting Saturday night and we will see how that goes. Trump is being urged to take a very hard line on theft of intellectual property. Any deal that does not include China admitting this exists and how they are going to get rid of it will be judged as a soft deal and a non-win for Trump. This is going to become a political issue going into 2020. Trump wants a rate cut. China has less risk in the talks and more staying power. But technology companies in China are going to hurt US suppliers. Regarding Iran, diplomatic solutions are always the best. Trump was initially against war but he is adamant about doing deals and putting his stamp on things. There is always going to be a hot potato in the middle east and that is never going away. Gold prices have soared on the geopolitical tensions, the Fed easing again and the weaker dollar. All of that is bullish for gold and it is one of his biggest equities.
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COMMENT
High yield bonds are an equity part of your portfolio even though they pay a dividend. It is a basket of the worst quality balance sheets in corporate North America. It is very high risk from a price perspective. The realized default rate even in the great recession was about 10% or so. So when the bonds do go bad, it is about 10% of the companies that are affected. So long as you think about it as an equity-like risk, then he has no issue with it. He has no issue with holding it indefinitely. This one is hedged to the Canadian dollar.
E.T.F.'s
COMMENT

[Is there an unhedged version or can he recommend a NASDAQ version] Larry recommends the QQQ-Q as there is no unhedged Canadian version.

E.T.F.'s
COMMENT

[Is there an unhedged version or can he recommend a NASDAQ version] Larry recommends the QQQ-Q as there is no unhedged Canadian version.

E.T.F.'s
SELL
The US 10 years have hit 2% in the last two weeks. This is going to be a big hurtle. 1.5 was the pre-Brexit low and we will hit that when we go into recession. He sold all his long bonds. He is slightly short. He expects interest rates to keep falling.
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COMMENT
The US capital markets are the most liquid in the world but from time to time volatility shocks can happen. He loves gold and thinks it is breaking out here. We probably have another 10% in gold and 20% in gold equities. He would prefer a gold equity ETF, although it is not early.
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Defensive Move Recommendation. Bond yields are low. He would not rush into bonds. Utilities and staples are expensive. He would prefer to be defensive with puts. Stay in the great companies you own if you want to own them.
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