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TOP PICK

Our Mission is to restore the full rare earth supply chain to the United States of America. MP Materials owns and operates Mountain Pass, the only integrated rare earth mining and processing site in North America. Our success will drive the onshoring of jobs, national security and a carbon-reduced future. Social media mentions are up 1200% in the past 24h.

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🔒 Premium Content Alert – This buzzing stock opinion is accessible only to Premium members

Discover an exclusive list and analysis of the stocks that are trending on social medias—accessible only to our Premium subscribers. With a keen focus on the stocks that are setting social media ablaze, this weekly feature offers an invaluable lens through which to evaluate market movers. Say goodbye to the endless scroll through social media timelines; we curate the buzz so you can invest your time as wisely as your money. Unlock Premium Now.

TOP PICK

Gold Resource Corporation is a gold and silver producer, developer, and explorer with its operations centered on the Don David Gold Mine in Oaxaca, Mexico. Under the direction of an experienced board and senior leadership team, the company’s focus is to unlock the significant upside potential of its existing infrastructure and large land position surrounding the mine in Oaxaca, Mexico, and to develop the Back Forty Project in Michigan, USA. Social media mentions are up 38% in the past 24h.

COMMENT
Advice for investors amidst all the volatility.

Really important to remind investors that investing is a long game. You wouldn't buy stocks, or a house, with the idea that if you don't like it you'll sell it in 12 months. You need to buy companies that are going to be around for a long time, and that will deliver growth and increase profitability for a long time.

Thinking about that, in the next 12 years there will be 3 presidential elections. In the next 5 years, we'll be talking about other things that might concern us. The companies that he invests in have stood the test of time. Most adults have lived through 9/11, the financial crisis, and the like, and here we are today. Though the financial crisis was only 15 years ago, it feels like 50, yet somehow we managed to get through it and come out even better afterwards.

COMMENT
Fundamentals to focus on for long-term performance.

Track record counts. Look back to how companies performed during down times, recessions and such. Companies that have been able to stay profitable through those times and, for example, pay their dividends, have been able to survive.

If you look at some of the world's great businesses, those large companies also have the capacity to hire the best. SBUX is an example, spending a lot of $$ to hire the guy who previously ran CMG. These companies have the capacity and wherewithal to be agile and make their way through. When Covid happened, SBUX and MCD morphed almost immediately to more takeout and didn't skip a beat.

COMMENT
In a trade war, where's the stimulus going to come from?

We're going to have to rely more on the private sector, as government debt levels are close to all-time highs. Probably corporate tax cuts in the US. 

May get some corporate tax cuts in Canada, because there's basically a realization (no matter your political stripe), that Canada needs to be competitive. We're losing investment to the US. He heard a recent statistic that the US invests roughly twice as much per worker as Canada does -- that's one of the main reasons that our productivity is lagging so badly compared to our major competitor and trading partner. We need to fix that.

DON'T BUY

Mainly copper and zinc. Incredibly cyclical. In 2011, share price was higher than today. Easier to look for companies that are delivering consistent profit growth over time. Pass on this type of business.

COMMENT
ETFs for the US market -- unhedged when CAD is strong, hedged when CAD is weak (as now)?

Doesn't make sense to play the hedging game. After 35 years in the investment business, he has yet to meet anyone who's correctly called the direction for any length of time. 

Plus, misunderstanding that just because something trades on a US exchange that it's purely USD. Companies like MSFT and MCD have revenues in currencies from all over the world. If you try to hedge, you may actually over-hedge USD exposure, and just guessing doesn't make any sense.

When you own equities, accept the fact that you have currency diversification and you're going to have some ups and downs due to currency moves.

DON'T BUY

So many companies now with competing weight-loss products. Riding the hype on this one drug, and he'd much prefer more diversification.

COMMENT
Trade deal on dairy opens up next year.

Has major operations in Europe, yet it's a Canadian company trading on the TSX. There are issues dealing with dairy and the commodity side of the business.

Lots of pressure within Canada on protected costs around dairy products. Might be an easier place for our government to give in on something, so wouldn't surprise him if our dairy protection weakens or softens a bit.

COMMENT

Trades on the TSX, and has major global operations. But impacted so much by what happens with trade.

COMMENT
Looking for exposure beyond US and Canada, and trades on the TSX.

Best option is to look for an international name that trades in the States as an ADR. You could get exposure to Europe this way.

BUY
Tariffs -- how to benefit?

Consumer staples are outperforming in the last few days, and that speaks to the advantage of having a balanced portfolio. Companies like KHC, UL, KVUE, and Nestle. It's not that they won't be affected (their costs would go up), but they're far less cyclical than other businesses. Earnings will be much more stable. Earnings could fall 10%, but not 50%. Dividends will be sustained.

Companies like Unilever and Nestle are huge in NA, but huge globally as well.

BUY
Tariffs -- how to benefit?

Consumer staples are outperforming in the last few days, and that speaks to the advantage of having a balanced portfolio. Companies like KHC, UL, KVUE, and Nestle. It's not that they won't be affected (their costs would go up), but they're far less cyclical than other businesses. Earnings will be much more stable. Earnings could fall 10%, but not 50%. Dividends will be sustained.

Companies like Unilever and Nestle are huge in NA, but huge globally as well.