N/A
Market. [Larry's Market Comment was pre-empted by Remembrance Day Coverage.]
BUY
Fixed income is broken. Returns are likely to stay low for a long time. This ETF has a basket of index inflation bonds and some strategies based on yield curve steepening and a hedge on interest rate movement. He loves these kinds of strategies. The MER is 1% but in the fixed income world you have to look at products like this.
BUY ON WEAKNESS
5G is the Internet of things. This is a sector with tremendous long term potential but don't jump into it with the markets at all time highs.
COMMENT
Renewables are the future so he likes it from that perspective.
WAIT
US Pipelines. This is a candidate for tax loss selling. He expects more pressure between now and mid-December and then it will be a good buy.
COMMENT
Financial, Tech and Services. The low volume is not a concern. It's been out two years and has not generated enough investment to be profitable so he is concerned it could get shut down. An ETF has the liquidity of their underlying securities. It's a very interesting play.
DON'T BUY
It is paying a 17+% dividend because it used to be double the valuation. Don't expect that dividend rate to remain. He suspects it will be cut.
COMMENT
Where to park cash when out of the market. He would want to put his money in a US$ money market strategy. Note that the markets could keep going up for 2 or 3 years.
N/A
Educational Segment. He thinks interest rates will continue to go lower. When we get to a recession, the best asset class to own is longer term fixed income – the US treasury market. He thinks the US 10 year will go to yielding close to zero during the next recession so owning it now will be a good investment. There is so much debt in the world that we can't see interest rates going up because we can't afford it.
N/A
Market. He is watching the American NAHB Housing Market Index. Global PMI numbers were contracting for 6 months in a row yet the home building numbers are at 20 month highs. You rarely have a recession when the home building industry is doing well. Lumber prices are picking up. Consumer spending south of the boarder is at a 6 year low but optimism is at a 19 year high. This is a conflict. The federal reserve is cutting rates and yet the unemployment rates are at 50 year lows. There are plummeting bond yield. Investors should take a shallow recession into account.
DON'T BUY
You should be concerned about electric vehicles if ATD.B-T will be a long term hold. Electric cars can be charged at home whereas there is no choice as to where to take an internal combustion engine. They are watching Norway which is the leader in electric vehicle adoption.
BUY
This would be the best of the life insurers. They have the cheapest valuation, the least leverage and the most opportunity for selling off legacy assets that are holding it back. It is a short term buy.
BUY
The CEO just bought a million shares. They just purchased a refinery at a steal. The larger refinery companies would not be interested in something this small.
PARTIAL BUY
It will hold up in an economic recession. His only concern with pipelines is that interest rates have come down so far in the last year, if interest rates went back up, pipelines would probably come back off. You may only want to own some, rather than adding to the position.
COMMENT
This company has had a massive run from 2014 to where it is today. After 2008 the company was focusing on squeezing as much money as possible out of their games. About 2012 they got voted worst company in America by consumers. Then again in 2013 so it got management's attention. They changed the CEO and then the company took off. It pulled off recently because they are competing with some big players in the world.