COMMENT
Job numbers. US job numbers were weaker than expected. It's been a number of months that we are missing expectations. In Canada, we have had months of job losses. The US is doing better at reopening than Canada.
COMMENT
Global corporate tax. Ultimately, governments will have to extract more taxes from global companies. Covid relief has had an impact on governments. Taxes must go up. There will be push back, but this will happen. Many industrial companies have higher taxes already but it is the tax havens that will push back.
COMMENT
Gold. The inflation debate is raging and there are lots of factors to consider. Yellen said that Biden should go ahead with spending plan even if it sets off inflation. She wants higher rates as well, which will be important for markets.
COMMENT
Agricultural ETFs. Are people going to be permanently eating more staples or is the increased demand more transitory. The world is not eating more soy and wheat. There is a degree of speculation and labour struggles to produce output. Trend is spiky and would not look as a long term investment. Okay for traders but not for longer term.
COMMENT

Would not suggest Put Write strategy (ZPH). Would prefer ZPAY for the US market. ZPH never owns the stocks whereas ZPAY wants to own the stock at better prices.

COMMENT

Would not suggest Put Write strategy (ZPH). Would prefer ZPAY for the US market. ZPH never owns the stocks whereas ZPAY wants to own the stock at better prices.

COMMENT

Likes Europe better. When not investing in Canada, you don't get the dividend tax credit. In a taxable account, would focus on ZWU since it has favourable tax treatment. In a registered account, he has been allocating to international companies since dividend is better.

COMMENT
Likes Europe better. When not investing in Canada, you don't get the dividend tax credit. In a taxable account, would focus on ZWU since it has favourable tax treatment. In a registered account, he has been allocating to international companies since dividend is better.
BUY
Utilities are capital intensive and has debt on their balance sheets. If inflation is going to push interest rates up, it would hurt margins, off-set by their regulatory ability to increase yield and income. You get some inflation protection. A great dividend player.
COMMENT

The profitability of banks is net interest margins. The steepening of the yield curve has led to banks being more profitable. A flattening yield curve is a headwind. We are not there yet. When the yield curve starts to flatten. ZEB is good to capture upside, and ZWB for when it will go sideways to down.

COMMENT

The profitability of banks is net interest margins. The steepening of the yield curve has led to banks being more profitable. A flattening yield curve is a headwind. We are not there yet. When the yield curve starts to flatten. ZEB is good to capture upside, and ZWB for when it will go sideways to down.

COMMENT
Gold. Real yield is important to consider when looking at gold. When real yield is negative like right now, it is bullish for gold. The correlation is to real yield and not nominal yield. Inflation expectation is increasing faster than nominal yield. Bitcoin is also pulling some of the money that would have gone into gold.
COMMENT
Educational Segment. The Feds want more inflation and also Yellen wants higher interest rates. The current inflation expectation is transitory supply shortages. Core inflation is about wages and wage pressure. We will see in years and decades that labour's share of income will have to keep going up. This will affect corporate profit margins. Volatility is related to inflation expectations and higher multiples. Corporate incomes has been hitting record highs. Government will need to issue debt and it will be interesting to see how the markets accepts this. Large inflation is not a good thing.
N/A
Market. There are a couple of problems right now. When people are thinking about risk, there is a lot of noise out there right now. And then there is financial engineering. Companies are not using GAAP earnings. This sent the multiples through the roof. S&P earnings are amongst they highest they have been. Companies are comparing Q1 earnings to a year ago when earnings were disastrous. There will be a jump in earnings surprises.
PARTIAL BUY

They are able to get better prices and deal with huge demand, but the problem is that they trade at about 50 times earnings. They generate terrific margins. He would probably step into this stock with half a position if he wanted to get in, given where markets are right now. It is a better holding that Intel.