Today, The Panic-Proof Portfolio (Stockchase Research) and Paul Harris, CFA commented about whether MSCI-N, NVO-N, GOOG-Q, CVS-N, WBA-Q, MDT-N, KKR-N, EL-N, LULU-Q, BAC-N, JPM-N, C-N, ENB-T, SYK-N, TD-T, AP.UN-T, T-T, BCE-T, AMZN-Q, PANW-N, CHKP-Q, CRWD-Q, GE-N, NTR-T, IGM-T, SIG-N, PANW-N, AAPL-Q, SHLE-T, AC-T, FLEX-Q, GEN-N, GLXY-T, TA-T, ARMK-N, DAL-N, TVK-T, PRL-T, UTHR-Q, UAL-Q, CPX-T, TMUS-Q, JXN-N, SLM-Q, HSUV.U-T, CASH-T, CASH-T, HPS.A-T are stocks to buy or sell.
We're generally in a time of easing interest rates over the next little while. How fast they're going to do that is the question. There was a perspective that the Fed would be easing a lot faster, but they may have to step back a bit before they commit to more easing. With the new administration and talk of immigration policy, tariffs, and so on, the Fed doesn't know what the economic backdrop will look like.
It's easy to say we're going to oust or limit all these people, but that has an impact on a lot of sectors of the economy. Tariffs may have a benefit short term, but long term there's more impact on inflation, etc. Musk and his department are saying they're going to change the way they lay off people, but unemployment going up will have a big impact on the economy.
Canadian economy is in worse shape than the US. Rate cuts may slow down a bit, but they have to bring down rates another 100-150 basis points from where they are today to get the economy going. This has an impact on the CAD.
Trump says something about 25% tariffs on Canada, and the loonie weakens considerably overnight. Though it has bounced back, reality is that there are a number of things going to be affecting the Canadian dollar in the next little while. The CAD is going to be weaker going forward.
Controls a lot of the commercial flight market, drives a lot of its growth. Very few competitors. Highly technical. Installed base for engines is very high -- they don't get changed willy-nilly, but they do need servicing as they age. Lowered debt. Once flying gets back to normal after Covid, opportunity to be more than it is presently.
Our PAST TOP PICK with GXLY is progressing well. To remain disciplined, we recommend trailing up the stop (from $13.50) to $17.00 at this time.