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COMMENT
Volatility and markets short term. Increased volatility. Two narratives. 1) If you live in Europe, will the conflict in Ukraine expand? 2) Outside Europe, it's higher rates, which will also have some impact on slowing demand. As we transition to higher rates, it causes a rotation. The impact on high-growth, non-profitable tech has been a selloff. Now we're starting to see buying into value and GARP names. Options and futures markets are moving around like yo-yos. If you look at a longer term 3-5 year horizon, there are fabulous opportunities right now for those with capital to put to work.
Unknown
COMMENT
Price of energy going forward. Tied to Ukraine. Supply in Europe has to come from somewhere else, and this is good news for Canada. The price ultimately reaches a point where it becomes a tax on the global consumer. Some countries are backtracking on taxes on oil. He sees it spiking up into the $130 range, which is reminiscent of the 1970 oil crisis. Investors need to think through these dynamics.
Unknown
COMMENT
Advice to investors. Prudent to have a cash buffer right now. This cash can be used to buy high quality stocks when they've sold off. Some good quality European companies have sold off, even when they have no debt, so it's worthwhile to take a look at those. Some of the global opportunities are looking very good, especially those based in Europe. Those that have European HQs, but global pressures. Lower and rebalance your tech exposure, in the face of higher rates.
Unknown
DON'T BUY
Cloud-based solution. Crowded market with big-name competitors. Poor operating leverage. Revenue is growing quickly, but profitability is poor. He'd pass.
Technology
COMMENT
Investing in tech right now. In the face of rising interest rates, stay away from high growth with no profit. Instead, go with more mature tech with dividends and a structural theme. Big tech will hold up much better in an inflationary environment. Higher rates are toxic for tech.
Unknown
DON'T BUY
In rising interest rate environment, a bond portfolio is going to be somewhat troubled. You have to actively trade it. You need to ask yourself how much fixed income exposure do you want and is it priced right? If rates go incredibly high, that's going to be detrimental to this type of holding. If you want bonds, you should be looking at 1-2 year vehicles. Look at some fixed income proxies that can participate in rising rates.
E.T.F.'s
BUY on WEAKNESS
Very good longer term. Reasonable balance sheet. Shareholder support is quite good. Reasonable returns. Beneficiary of semiconductor business. With volatility, stock probably moves further south, so chance to pick it up lower. Be aware that Japan's central bank is playing in the currency market to support the yen.
Healthcare