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COMMENT
bond outlook He is a bond bull. We're seeing a collapse of economic activity in countries around the world, certainly if we remain stuck in curve, Yield curves inverted auger a recession. Bonds are a good buy now, though it's been a painful trade. Investors will be rewarded 6 months later if they buy now.
COMMENT
How do you calculate your model prices? It's very complicated. He doesn't have a model price on AMZN, because the share price is so high now. It's trading right at the middle of its zone. If you see a recession coming, sell this, but not if you are bullish. Just a little piece of good news, like peace in Ukraine, the market will rally hard. Hold if you own it, but don't enter it now.
specialty stores
DON'T BUY
It's so tough here. He ranks it negatively. The financial health of MFC is poor. If it breaks below $25.43, watch out. It yield 4.9%, but he is worried about financials trading at these levels. There's something wrong with their balance sheet, but he hasn't done a deep dive on it. Sell if it falls to $24.50. Doesn't see an upside here, just the dividend.
insurance
COMMENT
bank outlook Most banks have corrected 5-7%, except Royal Bank which is expensive. The correction will continue. Hold onto your bank stocks, but he won't buy more until they fall further. Be patient. If there's a recession in Q3, banks won't do well. The inverted yield curve will hurt banks, though American banks have fared worse than Canadian ones lately.
DON'T BUY
He's not into gold miners. The gold price may rally, but a company needs to mine gold, which involves sharply rising costs these days. He models $26, though it could go to $37.63 based on positive momentum, but its earnings won't move. He won't buy it here. He much prefers physical gold over gold miners.
precious metals
