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COMMENT
Markets. Reflationary environment since last October/November. There will be fits and starts, but we'll work our way through. Financials, industrials, and basic materials are still underowned, especially in the US. Ultimately, good opportunities there. The tech-driven spaces are very expensive and seen as a source of cash for people to redeploy as we go through the reopening.
Unknown
COMMENT
Commodities hit today. Fairly bullish still. Saw good consolidation from May-July, and we're retesting areas of support right now. Pretty underowned. Copper is pulling back, as well as zinc. Agricultural commodities are strong, and the main agriculture ETF made a new high. Aluminum and nickel have been strong. Basic materials, including chemicals, is an area you want to watch through this pullback and maybe accumulate.
Unknown
COMMENT
Dividends and share buybacks. Generational low in interest rates. We're going the other way, though it takes time to put in a bottom. One of the most important areas is dividend growth. During falling rates, you want a stable dividend, such as utilities. But if we end up in a reflationary period, dividend growth is more important than a high dividend. So financials, industrials, and basic materials have lots of scope to raise dividends and return capital to shareholders. This will be a very important theme, much like the 1960s and 70s with the Nifty 50 and dividend growth.
Unknown
BUY
A real star. Best POS software company. Good growth rate, this year it's about 75%, estimate for 2023 is about 70%. RSI has been strong relative to the market. Will continue its growth in Canada and around the world.
0
WATCH
Great run at start of pandemic. Difficulty is newer contracts are with health insurers, so margins are lower. Not as sticky a service as you might think. You can join, and then unjoin. Hasn't held up. Stock's a bit broken. Need to see price pattern improve and subscriber base more stable.
Healthcare
HOLD
Great way to have exposure to copper and gold. Long-life assets, well operated. Stock's around the 200-day MA. Important to see it hold above $31. Over time, will likely grow its dividend. The VTV, dominated by economically sensitive stocks, made a new high 3 days ago. These are holding in better than secular growth areas like tech. If it holds, one to add to.
non-base metal mining
BUY
Semis are more tied to the business cycle, so in a reflationary environment, they should continue to do quite well. Earnings were very strong, trading at virtually a new high. 3 areas of growth: cloud, video gaming, and crypto. Great company. AMZN is great, but not as well set up.
computer software / processing