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COMMENT
Monetary policy is seeing a seismic shift and the impact of the Russian war is weakening the global outlook. Both amount to sustained volatility. In recent weeks we've seen a decent rebound especially in Canadian stocks. Pull back in Q2 on equities as we wait to see what happens in Ukraine. He isn't a massive fan of energy stocks. The second half of the year will see oil pull back to $80; the best is behind us.
Unknown
PARTIAL SELL
A stellar performance in the last 6 months with strong dividend growth in the past year. But slower economic activity in Asia is a headwind. Take profits or sell, then re-enter in the summer on a 10-15% pullback. He likes the dividend.
insurance
PARTIAL BUY
Strong balance sheet, which signals they can sustain their dividend of 5.7%. The stock is overvalued now.
oil / gas pipelines
DON'T BUY
Its PE is higher than peers and he expects headwinds in this sector. Growth forecasts for North America and Europe are dimming as economists expect higher rates. He wouldn't own this.
consulting
BUY
A long-term investment. US tech has fallen too much this year and faces further challenges this quarter. IBM's PE has pulled back and is now attractive. Tech as a whole is undervalued now.
electrical / electronic
BUY
Shares are now attractive. Analysts are more positive on Uber. It's a reopening play. Its fuel surcharge buffers rising oil prices. He targets $50, a decent short-term gain.
Technology
BUY
Some avoid utilities as interest rates rise. However, Canadian utilities have done very well due to the Russian invasion. So, investors seek defence in this sector. Valuations here are a little rich. He likes Hydro One for stability. He also likes clean energy like AQN, which he trimmed a little. Clean energy will come back this year after a strong 2020 and maybe not as strong as 2020, but still good.
electrical utilities