DON'T BUY
They made an investment in an acquisition that got them into cannabis. The company is best known for its dividend and he thinks it is safe. However, he cautions not to chase yield as the stock price has steadily fallen.
HOLD
He owns this. The company has fallen on harder times as buyers have slowed on hardware sales. They will be active in 5G, which should be positive longer term. He feels the company has redefined itself from being known for routers into much more. He will continue to hold it.
COMMENT
When to sell? Sell side discipline is based on either 1) being wrong on the call, 2) price exhaustion (fully valued) or 3) re-balance your portfolio. As MSFT has become a larger part of a portfolio you may want to consider selling some to re-balance. He does not think it has become fully valued yet. He would hold, but re-balance as your portfolio requires.
TOP PICK
They have truly professional management that grows revenues at 18-20% annual. They are spending $20 billion on research. At 20 times earnings this is a very good long term holding as their projects begin to pay off. Yield 0% (Analysts’ price target is $1453.53)
COMMENT
Housing & Recessions US Housing Starts have recovered back to 1.3 million new starts -- more normal levels. Housing start growth means we are not yet getting close to a recession as a decline in starts has been a good predictor of recessions.
TOP PICK
They make interior and exterior doors. They are in 65 countries and installed 35 million doors last year as housing starts continue to rise. Their margins are rising. You will see them become more profitable in the years ahead. Yield 0% (Analysts’ price target is $75.20)
TOP PICK
He has owned it for a while . They are getting a little more expensive -- into the mid-20 price multiple. However, with US housing starts continuing to grow, he sees good growth ahead. Yield 0.78% (Analysts’ price target is $604.14)
TOP PICK
If you decide you want to buy into the energy sector, which has been beaten up so badly, this is a good way to sneak in. It has bigger companies and it’s a relatively safe way of putting your toe in the water. You have to believe there’s a turnaround coming if you choose this pick.
TOP PICK
Some of the offshore stocks are worth investing because multiples are cheaper. Prospects in Canada are so-so, so it’s a good way to diversify out of Canada.
TOP PICK
It’s really not a bond fund. A place to park your money with yield just under 2%. You’re not exposed to a major sell-off in fixed income. If you’re cautious as he is, it’s a good play.
PAST TOP PICK
(A Top Pick Jan 11/19, Up 11%) He’s neutral on the banks at the moment. He wants to see how the economy sets out. Retail sales and unemployment numbers weren’t good. He would rather buy Scotia, mainly because they are outside of Canada. He would wait on the banks.
PAST TOP PICK
(A Top Pick Jan 11/19, Up 19%) A pretty conservative way to approach the market. Mainly utility type stocks that don’t bounce around. It’s worked quite well.
PAST TOP PICK
(A Top Pick Jan 11/19, Up 22%) A very safe ETFs. Low volatility stocks that are sort of dull, but they have done quite well in the markets recently.
COMMENT
There’s nothing that’s holding the markets back. Some of the volume is down, so he’s sitting on the sidelines though. It’s rare to have rising returns back to back. He’s neutral right now by reducing equities and going into fixed income.
COMMENT
Phase 1 of the US-China trade deal was tepid with little details. There’s finally results of what the trade war has done. The valuations are still pretty high. He doesn’t believe inflation has gone away.