BUY ON WEAKNESS
Canadian banks. In this environment, the Canadian banks will probably come down a bit. In 2008, the banks were down by 50%. Be opportunistic when you deploy capital. TD has some hair on it. Pick one of the big 5, buy on the next weakness, and you should be fine. We have a monopoly structure here in Canada. But beware that there could be more downside.
WAIT
Post-Covid activity of going out and being social is somewhat negative for online shopping. Great company, valuation still too rich. Don't look at China for the proxy trade, as the political risk is high. Higher interest rates are negative for tech.
WAIT
Time to jump into tech? FAANGs have come under pressure. Post-Covid activity of going out and being social is somewhat negative for online shopping. Don't look at China for the proxy trade, as the political risk is high. Higher interest rates are negative for tech. You just want to wait a bit.
WAIT
Ad-driven. If companies have to lay off people due to higher interest rates, they'll be much more strategic in how they advertise. Great company. Be careful at these levels. Wait to see if there are higher unemployment levels and how these impact the business. Ton of cash.
COMMENT
Defense portion is about 48% of the business. In the space, NOC and LMT tend to be cheaper. European peers have had huge runs.
COMMENT
Commodities trading. If you hold them, you can trim them at the top, and add to them at the bottom. This strategy can be a good source of cash.
HOLD
Copper is a China recovery story, but it's still in lockdown. Demand for copper, iron ore, and energy is below optimal global levels. If you're of the view that China will exit Covid in the next 12 months, owning copper here would make some sense, even if you're underwater. China's announced a big infrastructure plan.
WATCH
Does the company have positive operating leverage for growth and profitability? If it can show that, it could be the next multi-year winner at a great entry level. Right now, the market's saying "show me". For him right now, he would not buy. He's watching and waiting.
COMMENT
Overlooked sectors. Telcos, but in a rising interest rate environment it will be a good yield proxy. Generally, defensive consumer names. Pharma and biotech of size.
TOP PICK
Benefits from rising inflation. Best of breed miner. Exposure to potash and China coming back online. Inexpensive at these levels. Technical resistance around $48. Yield is 11.93%. (Analysts’ price target is $65.18)
TOP PICK
Can pass through inflation costs. Rising dividend. Headquartered in a safe haven. Acquisitions have worked out. (Target price is in CHF.) Yield is 2.45%. (Analysts’ price target is $127.40)
TOP PICK
Attractive dividend, 35% free cashflow. Activist investor is making positive changes such as new CEO, board seats, and selling down retail. Oil has run, but the Ukraine conflict is not over. Having some exposure to commodities, and oil in particular, in an inflationary environment makes some sense. Yield is 4.66%. (Analysts’ price target is $58.07)
COMMENT
Alphabet was reported to be pausing hiring for two weeks. The market reaction was far milder today, but it's still silly. After all, the Fed is tightening, so what CEO in their right mind will hire more?
DON'T BUY
When rates go higher, people sell CCI. Also, there's been churn at CCI.
STRONG BUY
It has a unique opportunity with the new CEO. He believes in this so strongly that he says you should buy it right now.