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COMMENT
Markets. Up seven consecutive months. September is historically a seasonally down month. Delta and other variants, looming Fed tapering. Not surprising to see a bit of a pullback. S&P is already down 1.5% this month, and hard to tell if it'll go down 3-5%. His cash levels are higher, above 10%, to take advantage of any potential weakness. We've already seen weakness, and perhaps there's more to come.
Unknown
COMMENT
Not hiding in defensive stocks? He prefers cyclical over defensive. Delta, inflation, or supply chain constraints may delay recovery, but not derail it. Vaccinations are progressing, and it will take another few months to get to herd immunity of 75%. Looking out 12-18-24 months, you want to be in financials, industrials, and energy.
Unknown
RISKY BUY
Fintech has lots of long-term growth, so the space makes sense. 7x price to sales, 334x PE, 35% earnings growth rate. Expensive. Volatile. This 200-day MA could be a trading opportunity. Concerned about valuation. Higher rates will affect the high-growth names.
0
COMMENT
Basket of 25 US tech stocks, equal weight, with a covered call. Yield is about 10%, but going forward it may be closer to 7%. Be aware that much of the yield is a ROC. It's not a straight dividend. He watches the ZWT ETF, market weighted, 65 holdings, more diversified, lower distribution, but it's outperformed TXF this year.
E.T.F.'s
COMMENT
The TXF ETF is a basket of 25 US tech stocks, equal weight, with a covered call. Yield is about 10%, but going forward it may be closer to 7%. Be aware that much of the yield is a ROC. It's not a straight dividend. He watches ZWT, market weighted, 65 holdings, more diversified, lower distribution, but it's outperformed TXF this year.
E.T.F.'s
COMMENT
Covered call ETFs. When market's are strong and the underlying securities are doing well, you will get a higher distribution, but you'll give up something in total returns. He really likes the covered call strategy if you feel that underlying index is going to be flat, so you get the principal appreciation, covered call option, and the dividend. They don't protect you tremendously in a down market. He likes ZWU, a basket of telecoms and pipelines, where you get the high yield plus the covered call option premiums.
Unknown
BUY
He likes ZWU, a basket of telecoms and pipelines, where you get the high yield plus the covered call option premiums.
E.T.F.'s