BUY ON WEAKNESS

As a value investor, not growth, he didn't like SLF when markets were ripping higher late last year. However, if this falls down to its trend line of $70, he would buy.

COMMENT
A return to a 1973 bear market?

1973 saw Nixon's Watergate and the oil embargo. This isn't today's world. Instead, the markets now are overvalued and there is geopolitical uncertainty. Doesn't see a 40% bear market like 1973, but we are seeing the forth come off. Today's market can sustain a 20x multiple or -300 or -400 S&P points (5,200-5,300), which he doesn't like, isn't cheap. But he might buy at those lower levels.

COMMENT
educationl segment

Technicals tell us we'll soon get a bounce, but he doesn't know when and he doesn't see a catalyst to trigger a bull market. First, the Fed's survey, The Beige Book, recently saw a major spike in the number of times "uncertainty" appeared (a survey of business sentiment). Businesses are very, very cautious. Similarly, the AAII survey of individual investors shows bearish sentiment, so we're close to a bottom. Thirdly, the graph of current volatility vs. expected volatility in 3 months is also at an extreme. So, day traders can ride this out, but not mom and pop investors in or nearing retirement.

COMMENT

He's been cautious for months. The market is overvalued. The hedge fund community is very levered. Time to take some money off the table as some of the froth is coming off. There's nothing fundamentally wrong with the economy. Take Tesla: at 200x earnings is insane; they sell cars, so they should be trading at a premium to GM like 25-30x earnings. So, Tesla has another 50% to fall before it's even reasonably priced. The best support for the S&P is 5,200--last August's bottom. By before that or wait? Doesn't know. Don't expect a 50% drop, but 10-15% which is healthy.

DON'T BUY

They give exposure to public market companies that play in private equity and private credit, not pure exposure to private credit. This is volatile. An ETF can't provide this exposure or liquidiity

BUY
HUTL vs. ZWU

Both offer similar exposure. He doesn't looked at HUTL's foreign exposure, but likes both as a strategy. They take turns outperforming each other. Even. Both are good.

BUY
ZWU vs. HUTL

Both offer similar exposure. He doesn't looked at HUTL's foreign exposure, but likes both as a strategy. They take turns outperforming each other. Even. Both are good.

COMMENT
Caller has an RRSP with 80% USD, when would you convert some back to CAD using DLR.U to DLR?

Maybe after the Canadian election or a new trade deal, 1-3 quarters. Will be lots of volatility and the CAD could weaken. The CAD is grossly undervalued and should be trading at $1.20. Hedge in the next 2-5 years.

BUY

He owns a lot. Their growth is in aerospace. Nobody wants Boeing, so they'll buy HON. He also likes their chemicals business, though it isn't growth. Their automation is a work in progress.

PARTIAL BUY

Went down. There was a big short squeeze. The CEO is doing very well, but fell short of high expectations. Start a position now and leave room for adding more if it goes down.

BUY ON WEAKNESS

They had a terrific quarter, but fell 6% anyway. Is -13% from all-time high of a few weeks ago. But it usually sells off on good quarters, but bounces back, so you must buy it into weakness. Almost always. They reported a revenue beat, but earnings miss. Same-store sales were +6.8%, beating the street. Operating margin barely missed as did EPS. Costco shoppers are still spending, but getting picky about value. Non-food same-store sales growth was around 15%, good. Only one-sixth of their goods come from China, Canada and Mexico, so they are fairly insulated from tariffs; and they can replaced those tariffed items with non-tariffed ones. Shares are hit because it's a high-PE stock and the market is down. Shares now are a buying opportunity.

BUY ON WEAKNESS

Is -19% this year, but peaked in January. It's a richly valued momentum stock, struggling in this market. Last week, they reported an excellent quarter: a big top and bottom line beat, accelerating revenue growth and strength outside North America. Gross margins beat, a huge EPS beat and issued solid full-year guidance. Net wholesale sales were up 29.1% and direct to consumer up 43.4%. Saw huge brand awareness growth last year.

WEAK BUY

Shares slid 20% after reporting last month, despite a big top and bottom line beat, but issued weak quarterly guidance due to weird inventory issues. Shares have fallen even lower since then or -45% since that report. This may be worth buying on weakness. Much prefers ON.

SELL

His favourite in this space is Ralph Lauren which collapsed today, and TPR is not better than RL. TPR will go lower in this market.

DON'T BUY

Shares are down, because people feel that the shortage will end. Trades at a 4-5x PE, so shares will go lower, and it's not as cheap as you think.