Latest Stock Buy or Sell? Make More Informed Decisions!

Today, Larry Berman CFA, CMT, CTA and Ross Healy commented about whether ARX.TO, BABA, AGI.TO, AC.TO, CRM, TECK.B.TO, PPL.TO, MFC.TO, EDR.TO, ARE.TO, FVI.TO, CR.TO, XGD.TO, ZWP.TO, ZWE.TO, ZWU.TO, BLOK, FNGU, KWEB are stocks to buy or sell.

COMMENT
Delta variant. A noise factor. We have seen the positive impact of vaccinations and health measures. It is not eliminating transmissions but it is impacting hospitalizations. Markets respond with memory of what happened last time cases went up. However, the impact is reduced.
COMMENT

Didi IPO. Have looked at KWEB a few months ago, which tracks Chinese tech. He saw that there was a risk of a pull-back. The valuation of Chinese tech companies relative to the US, there is a significant discount in terms of multiples. Any weakness caused by something like the Didi Chinese regulator issue would be an opportunity for investors.

BUY ON WEAKNESS

Resistance has turned to support around $65. Around this level, the risk-reward is pretty good. It is an opportunity when it falls to these levels. Equivalent companies to Amazon in China is quite cheap.

COMMENT
Alternatives to fixed income. This asset class is broken and it may be on a permanent basis. The yield you get from your core fixed income is lower than what it used to be, which causes the challenge. You don't get the interest protection and after inflation, it is negative. The debt in the world means interest rates must stay low. The private credit area is booming, where they lend in areas banks can't or won't. The yields are around 6-10% but without volatility. Private real-estate lending is quite interesting. There are alternatives but they are hard to get into with minimum balances. There will be more in the next years that will come to market.
COMMENT
It is triple leveraged so it provides triple the exposure of the index. It rebalances constantly and you are buying high and selling low. The more volatile the asset is, the worse the rebalancing impact is. Over time, it will erode the net asset value. Not good for long term buy and hold. Trading only.
COMMENT

This is not a pure blockchain play. It holds Bidu for example. They do hold some like HIVE Blockchain. Look elsewhere if you want a pure play on blockchain.

COMMENT

For yield seekers, ZWU is a great domestic play. Yield is currently around 7%. It is interest rate sensitive and to energy. If you want European dividend plays, he would recommend ZWE and ZWP.

COMMENT

For yield seekers, ZWU is a great domestic play. Yield is currently around 7%. It is interest rate sensitive and to energy. If you want European dividend plays, he would recommend ZWE and ZWP.

COMMENT

For yield seekers, ZWU is a great domestic play. Yield is currently around 7%. It is interest rate sensitive and to energy. If you want European dividend plays, he would recommend ZWE and ZWP.

COMMENT
Utilities to combat inflation. They have a lot of capital and if the cost of capital goes up, then their margins go down. The energy sector for now is very positive. If you think inflation pressures will build and you want fixed income type exposure, then you can look at gold and inflation-linked bonds. Utilities in general will not be a good hedge against inflation.
BUY ON WEAKNESS
Has been a long term bull on gold for the last few years. Below 1200 is a great risk-reward trade. Gold in the next few years should get into the 2300-2500 range. Thinks that there is a dynamic where there is so much debt in the world and central banks willing to accept inflation. Real rates will be negative and this will be bullish for gold. However, there are cryptos that are pulling money from gold, which is a dynamic that has not existed before. Trimmed a little into the strength. Trading it now.
COMMENT
Educational Segment. The world is going green and there is a tremendous down trend in investment in the energy sector. There is ESG, US shale dropping off and Canadian production being stymied that are affecting oil right now. The futures markets are at $65-$75 for the next year or so. If you extend this out to a decade from now, prices are anchored in the $50s. Prices were depressed in 2020 and forward prices are still depressed. There is short-run supply and demand. It is bullish for oil as a trade. The prices could go up to $100 range. However, it is not investable. Only for trade.
N/A
Market. There are two camps when it comes to market opinion. The first camp feels that the market might be a bit high and a correction may happen but otherwise it is upwards from here as the economy opens up. The other camp believes that a savage bear market lies ahead of us as valuations are so high. Once a bear market gets under way it would be hard to stop. He feels that a lot of investors have lost tack of how expensive the S&P actually is in price to book terms. Consider that the S&P is just 15% away from the same peak in price to book terms that it reached in 2000. After a 5000 level, he would be surprised if it can rise. He thinks the FED cannot afford another market sell off.
BUY
Crude Target. The cure for low energy prices is low energy prices. Oil had low prices. There is now a shortage of oil. It has broken out of a long term downtrend. He sees the possibility of triple digit prices. Draw down has pushed oil prices down.
RISKY
It is a stock that is very cheap. With high energy prices, that has lifted all of these companies. It was as low as 10% of its book value. His fair market value has been going literally straight up. He would stay with it. He recommended it as a speculative buy a while ago as it made sense. He would prefer to buy a junior oil ETF rather than bet on one junior oil company.