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COMMENT
Berman's call was replaced with special coverage today.
Unknown
COMMENT
Feels like the late 90s. Hard to argue there's not a lot of speculation going on. See it in crypto and other areas. Tech sector has more fundamentals behind it now. But he has to chuckle at Rivian and Lucid. They make TSLA look like a blue chip, deep value stock in terms of valuation. People get caught up in the momentum, but there's a day of reckoning. Look at Zoom, Peleton, and the pot sector. Be wary of speculation. Still early in the economic cycle, with monetary and fiscal tailwinds. Corporate profits have been much stronger this year, but you can't be unaware of valuation risk and potential potholes.
Unknown
COMMENT
Equities vs. fixed income. You want to stay in the market, but have to be wary of the risks. What makes the market go higher? Earnings growth or a higher multiple. We've stretched the rubber band on the multiple as far as we can, with low interest rates. So it has to be earnings growth. Cyclical areas will do well for the next year or two like energy, industrials, recovery stocks, airlines and autos. You have to give yourself downside protection. What's the potential upside vs. downside risk? If he has to stay in stocks, he wants a dividend yield, relatively stable earnings, and relatively low valuation. Financials, pipelines, telecoms, rather than chasing runs. Bonds are a money losing proposition for the next number of years. Look for safe stocks, maybe a little downside, earnings stability, big dividend yield. Pipelines tick all those boxes. Some of them are putting excess cash into renewables.
Unknown
DON'T BUY
Debt is still massive. Need to pay that down before they can reward shareholders. Not at the top of his list. Has already had a significant move.
oil / gas
HOLD
Huge growth in this area. Data's needed for government, urban planning, defence. Data quality much better than from a drone. One of the best ways to play it.
computer software / processing
HOLD
The payment companies have all been hit. Global footprint, will participate in the recovery. He'd slightly prefer Visa over MA, but they're close. Not cheap, but better growth ahead. Stick with it.
other services
DON'T BUY
Mistake to buy value in technology. If you're going to buy tech, buy growth. Revenues declining. Lots of stumbles. Just look at the long-term chart.
electrical / electronic