Today, The Weekly Buzzing Stocks by Billy Kawasaki and The Panic-Proof Portfolio (Stockchase Research) commented about whether ATD-T, HBM-T, NVDA-Q, CNR-T, TSLA-Q, LLY-N, GM-N are stocks to buy or sell.
Geopolitical conflict certainly adds volatility and, generally, October isn't the strongest month for investing. Factor those two things in with other economic data such as US non-farm payrolls tomorrow. He wouldn't be surprised if the runup over the last year takes a bit of a pause for maybe a month. Not expecting major declines, but can anticipate market trading sideways to slightly down.
Then late October/early November, the bull market will continue its run through the next 6-8 months or so.
That's it primarily. His view is that economic data will continue to come in weaker. A number of data points have been revised downward over the past few quarters. That will continue, sees further weakness in the economy. We're in one of those funny cycles now where bad economic news somehow means good news in the stock market. Lowering inflation expectations and interest rates will propel markets forward. He is starting to worry about late 2025 and into 2026.
But for the next 10 months or so, you might want to be invested a little more aggressively, to take advantage of what should be a continuation of market strength.
For the last 6 months, he's leaned into the AI, tech-driven themes. That said, there's always going to be movement between growth and value. At different times, value and interest-rate sensitives will have their day in the sun.
His overall view is that growth-focused securities will primarily drive the market going forward. Any short-term pullback on core names such as NVDA or mega-cap tech is a buying opportunity. Doesn't mean you can't have other things in your portfolio, as diversification is always an important factor.
But if he was choosing one sector to ride for the next 6 months or so, it would definitely be the more tech-focused sector.
An income play, using leverage and covered calls. Always be cautious using leverage. Leverage to the upside is great, to the downside it hurts a bit more. Income generated is very strong.
These strategies can work very well if you're less concerned about capital appreciation and more about income. Geared to work well in a sideways or down market. These products are popular, but he doesn't use them. Know what you're getting into.
There's another Hamilton ETF that isn't as levered. Its distribution is about half of HCAL, but performance has been significantly better. In an upward market, you want more exposure to the underlying bank stocks.
Recent sale of MLSE will generate significant cash windfall. Comes at a good time, with concerns about debt load. Debt rating was cut. Traditionally owned for the dividend, so a cut would be a last resort. That said, you still need strong cashflows to pay that dividend while servicing your debt.
Not super-high on his list of Canadian stocks to own, but he does understand income needs. Rate cuts should propel stock forward. Not a terrible stock, but he'd look elsewhere.