Latest Stock Buy or Sell? Make More Informed Decisions!

Investor complacency and market opportunity. The VIX is at 20. There's some complacency around what's going to happen in the market over the next year or so. Earnings for the S&P 500 are probably still too high. If we enter a period of slower economic growth, those numbers have to come down. Most of the companies report over the next couple of weeks. Earnings for the S&P 500 have slowly come down, but there's more to go and that's when you want to look at buying.

Inflation. Canada started increasing rates a lot faster than everybody else. Central banks around the world are still going to be increasing rates, albeit at a slower rate. If you look back to 2019, a lot of things like oil and gas are at the same price, so nothing's really changed. Even GDP is not that far off what it was before. The one thing that has changed is interest rates/inflation. Supply issues caused inflation with prices going up. Over the next year, that should change, especially if China really starts moving again. Though this will have implications for oil, in general it should add some deflation to the environment. May have a rocky road for the next little while, but in chaos there's opportunity. Pick companies that you want to own for the long term and put them in your portfolio at cheaper multiples, though they may still fall a bit more.

Gold. He doesn't own gold or gold stocks. Owning gold doesn't pay you anything. It's done very well in the last little while, perhaps because Bitcoin isn't as stable as people thought it was going to be. There's a feeling that the USD is coming off, and that will help gold. The feeling that interest rates are being lowered is also helping. He'd rather own gold than the stocks, because you have to deal with company dynamics as well as geopolitical issues. They don't meet their cost of capital on a regular basis. Has the potential to go up from here. It might have done poorly or been flat last year, but it didn't hurt you.

Great company. Diagnostic businesses helped through Covid. Some of the pipeline is coming off patent. Used free cashflow to buy back shares and to buy a few businesses. This will be the macro trend: buy pipelines, because they can't R&D drugs fast enough. 15x earnings, yield is 3%, not expensive. Only problem might be having to buy it on a foreign exchange.

Followed the trend of buying back shares, increasing dividend, divesting non-core assets. These companies are in much better shape financially than ever before. Capex discipline. Will benefit from China coming back online. Cheap multiple.

Invest in Europe? Hedge the CAD? He doesn't hedge the CAD at all because these are long-duration assets, plus a lot of companies like MSFT manage the foreign exchange themselves. There are great European businesses, and you should own them if you can find them. But there are a lot of great companies in Canada and the US that have access to the rest of the world, and you're not taking as much currency risk. However, hedging a bond portfolio that's investing internationally makes a lot more sense, as you need to be able to hedge the maturities.

Instead, he owns POW, the holding company. Thinks POW can narrow the discount on its NAV. GWO is not expensive at 1.1-1.2x book. Great dividend yield, low PE. US asset management arm has been tough, but should improve.

Thinks it can narrow the discount on its NAV.

Canadian banks. He owns CM, BNS, and RY. Canadian banks are not expensive. Difficulties with housing market plus slowing economy are pushing them to over-reserve. 2008 scared them. Not expensive, great dividend, oligopolies. CM has always been a difficult story. It had a great retail franchise, until investment was diverted to wealth management where it's always been playing catch up. Great businesses, will continue to do well. May suffer this year on asset management and investment banking. BNS international business sometimes gives them a higher multiple, but sometimes a lower one in times of slower economic growth. Any of them should do well for you.

Not expensive, great dividend, oligopoly. Difficulties with housing market plus slowing economy are pushing them to over-reserve. CM has always been a difficult story. It had a great retail franchise, until investment was diverted to wealth management where it's always been playing catch up. Great business, will continue to do well.

Not expensive, great dividend, oligopoly. Difficulties with housing market plus slowing economy are pushing them to over-reserve. International business sometimes gives BNS a higher multiple, but sometimes a lower one in times of slower economic growth. Great business that should continue to do well.