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COMMENT
We're not overvalued, but are stretched. Conviction in this market has slipped a little entering autumn. The recovery is performing better than expected from the start of the year. He doesn't see a massive pullback coming. The Delta and inflation are two forces investors must watch. September will likely show meaningful gains in employment that will effect stocks through the rest of this year. Inflation fears of last spring have come off; investors are gradually agreeing with the Fed that inflation will be transitory. But what fiscal packages will arise in Canada and the U.S? The Fed won't do anything drastically and won't make major moves until next year, probably.
Unknown
BUY on WEAKNESS
There's upside, though valuations are stretched. Technology going forward will be strong for semi makers like AMD. Growth outlook is positive. But wait for a slightly pullback in AMD.
electrical / electronic
BUY
CNQ vs. Suncor The energy sector looks good. Today's news says that we could see oil prices topping $100 in 2022, but he thinks $80 is a more realistic target. Growing demand for oil should continue into 2022. CNQ could crack the summer's resistance level. Stick with the large-cap oil names. CNQ vs. Suncor? Own both. Anything could happen to smaller-cap names in the face of a fourth wave of Covid. Long-term, though, oil names will be less and less attractive.
oil / gas
BUY
It's done reasonable well. Similar sentiment with AMD. Semis will do well, but will face stiff competition from Taiwan Semiconductor. Growth lies ahead under a new CEO.
electrical / electronic
BUY on WEAKNESS
There's decent support at $170. The stock has come off in recent months. Wait for a Sept/Oct pullback to $160. SWK offers good value. Last September, the S&P was down 10%, so we are overdue for a meaningful pullback, if we get one. A 5-10% pullback is a buying opportunity.
misc industrial products
BUY on WEAKNESS
This stock has exploded recently, way above bullish targets. The price is too high, driven by a lot of quick money flooding in. Let it cool off before buying. But there's always been a lot of volatility in uranium.
non-base metal mining
BUY
A defensive play. It's trading off its highs. A good choice for a portfolio because it adds defense. Valuations are better now. Tim Horton's re-launching the Roll Up To Win campaign is smart.
food services