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COMMENT
Market headwinds. After 6 consecutive monthly gains, concerns will be more inflated. We'll have to watch the Delta variant, and some of the aggressive Chinese regulatory actions can certainly keep the market in check. August and September are seasonally weak. Seeing volatility. Vaccination rates continuing to climb. The race between the Delta variant and vaccination rates will determine how equity markets will do over the next several months. Macro economic outlook is quite favourable because of massive fiscal stimulus, tremendous amount of global household savings, and continued low interest rates. These provide a positive backdrop for the global economy and for equity markets.
Unknown
COMMENT
Stock-picking in this environment. Always look for strong secular growth companies, with high quality attributes, trading at fair or reasonable valuation. Tactically, you want to be in cyclicals like financials, materials, energy, and consumer discretionary over defensives like consumer staples and utilities. Likes the US for depth and breadth of high quality names. Europe looks attractive from a relative valuation discount. Covid numbers dropping in the UK. In Canada, likes financials, energy, and materials.
Unknown
COMMENT
Rich valuation of US equities. Parts of the US market do look rich, such as less mature tech names. Price to sales measure of the S&P Tech sector is back to 2000 levels, and we know what happened after that, so you have to watch out. Some tech names he'll continue to hold and add to, but some areas are looking expensive. It's the job of portfolio managers to choose the names and sectors that make sense for their clients.
Unknown
HOLD

Has underperformed the broader S&P 500 index since last fall. Great balance sheet, but perhaps not enough EPS growth at 9%. You want to see strong revenue growth, and looking back 5 years, AAPL's is only about 4%. High margins let it do well. Is this sustainable? AAPL is fine, but he'd prefer FB, GOOG, MSFT, or AMZN, which all have higher revenue growth.

electrical / electronic
COMMENT

Owning the tech giants. AAPL has underperformed the broader S&P 500 index since last fall. Great balance sheet, but perhaps not enough EPS growth at 9%. You want to see strong revenue growth, and looking back 5 years, AAPL's is only about 4%. High margins let it do well. Is this sustainable? Ahead of AAPL, he'd prefer FB, GOOG, MSFT, or AMZN, which all have higher revenue growth and each of which he owns.

Unknown
DON'T BUY
Very mature tech company that's having trouble finding growth. Technically sound, around the 50-day moving average. Hasn't outperformed the S&P since 2011. Cheap at 12.5x earnings. Revenue growth forecast is anemic at only about 1%. Future is murky. Yield is 4.6% and sustainable.
electrical / electronic
WEAK BUY

WM vs. WCN Fell last year, and now is picking up steam. It's more of a utility industrial than a cyclical. If you want cyclical, look at CAT or other industrial names. 28x forward earnings for 11% growth, so a bit rich for him. Fundamentally, a great business. Better valuation than WCN and growth is about the same. To choose, he'd pick WM, the larger one.

environmental