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COMMENT
Artificially inflated market? January started quite strong. Then Covid was just in China, but it spread and brought the market down by about 35%. Governments stepped up and moved a ton of stimulus into the market. So now we're up 61% from the March lows. A bit of wind has come out of our sails, but we're up from where we started at the beginning of the year. Not out of the woods. No vaccine, no clear communication on long-term stimulus, threat of a Canadian election, and the US election. Valuations are quite high. Plus, certain pockets have rampant speculation. Next 6-18 months are going to be critical for preserving capital. You should be happy if you're even or a little bit up on the year.
Unknown
COMMENT
Considerations for preserving capital. 1) Forward returns are a function of what you pay. 2) Use time to your advantage and hold for a long time, rather than trading. 3) Have some cash on the sidelines to take advantage of opportunities. Always have a wish list at the ready for market downturns.
Unknown
BUY
Engineered film like tarps, plus the more exciting agriculture segment. Autonomous farm equipment. Small cap. They're big fans of this stock. Food scarcity is going to necessitate efficiencies.
INDUSTRIAL PRODUCTS
BUY
Water boilers and filtration technology. Increasing penetration into India, and this will be the catalyst. Grows free cash flow by about 12% per year. Dividend has grown by about 22% over the last 5 years.
misc industrial products
BUY
Industrials have lagged, and if there's a recovery, we're going to see widespread participation. If you believe we're on that path, Otis would be a good way to play this.
machinery
DON'T BUY
Challenge with Chinese stocks is when you invest in China, you don't actually hold the shares in your name. From a political perspective, you don't have claim to those assets. Now we have US-China tensions. He'd rather buy one of the multinational companies with operations in China that benefit from the recovery.
0
DON'T BUY

Like the Google of the auto world, in that they have one big product, the Ford F-150. Unemployment data in the US, around 10%, it's a challenge for them to buy an expensive vehicle. Challenged going forward. Dividend suspended. He's not interested.

Automotive