N/A
A Comment -- General Comments From an Expert
Market. If you roll back the clock and review predictions for the first part of 2019, it continues to notch down today. The best is in the review mirror. Something not priced into earnings is the relative strength in the US dollar over the year and that should be a headwind as well. The deceleration in the economy is possibly not priced in or maybe there are better earnings coming due to the FED backing off on rate hikes. We are going to get a resolution in trade tensions with China & the US sometime this year. There may be a significant number of tariffs. The resolution will be a bit disappointing. Negative rate policies in Europe are proving to be catastrophic when looking at financial ETFs for Europe, the S&P and Canada.
Unknown
COMMENT
ZWC-T & ZWU-T. He loves ZWU-T as a defensive holding. ZWC-T is a broad TSX with a covered call overlay to enhance yields. Canada should underperform the world for a long time as a quarter of the index is the banks. The best two growth areas in the world for a couple of decades are healthcare and technology. These two ETFs would overweight Canada if they were your whole portfolio. ZWE-T and ZWS-T are preferable to include in a portfolio.
E.T.F.'s
COMMENT
ZWC-T & ZWU-T. He loves ZWU-T as a defensive holding. ZWC-T is a broad TSX with a covered call overlay to enhance yields. Canada should underperform the world for a long time as a quarter of the index is the banks. The best two growth areas in the world for a couple of decades are healthcare and technology. These two ETFs would overweight Canada if they were your whole portfolio. ZWE-T and ZWS-T are preferable to include in a portfolio.
E.T.F.'s
DON'T BUY
Fairfax Financial
You had a sharp move in 2015 and it has been flat since and is at the lower end of that range since. It is heading to the 2010 level of $300 during the next recession. He likes the company and management but there is more downside than upside due to market conditions.
insurance
DON'T BUY
It is selecting the securities using artificial intelligence. He does not know what it is trying to do. Within 10 to 20 years all of the money in the world will be run by this technology. He would not buy it today because he does not know what the criteria are for selection of stocks.
E.T.F.'s
DON'T BUY
Great West Lifeco
If you look at '07/08 you will get something similar in the next recession. With low interest rates they will not do well. This one has not grown for years nor made money for anyone.
insurance
HOLD
You are better to go into a fund within Brookfield that invests in infrastructure. Sometimes there are minimum size requirements for investment. BPY.UN-T is not a pure play on infrastructure. But these guys are one of the best teams. We are at the top of the range and this one being defensive will probably hold in longer.
REAL ESTATE
WATCH
He loves healthcare. It is a growth area for decades to come. It is an equal weight exposure to healthcare. He likes this. It is defensive. If you don’t need to be invested then he thinks there will be a lot more volatility in the next few years and should only accumulate this during periods of panic.
E.T.F.'s
BUY
Fixed Income. We are in a low down phase and not in contraction of the economy. In the next year or two, ZTL-T or TLT-T are ways to play longer term treasuries.
Unknown
N/A
Educational Segment. Why has inflation been so soft when we are at full employment? The FED is told to seek full employment and stable inflation. The FED is NOT meeting their goals as of today, however. Both are a little low of target. Labour's share of business profits is going down and so that will prevent inflation. This has been happening for decades. Also, life expectancy has been increasing and so people have to save more during their working years.
Unknown
N/A
A Comment -- General Comments From an Expert
Market. He believes that China stimulates their economy. But factories are now getting orders again after pessimism in North America in Q4. We are within 2-3% of last year's highs. The easy money off the recovery has been made. We will see how first quarter earnings are. The economy has to slow down just but the law of large numbers. There will be casualties along the way. We are looking at 3-5% return in the markets for the remainder of the year. We already saw 14% this year. He still likes the US because the focus on new technology is from the US.
Unknown
BUY
BSX-N vs. TFX-N. TFX-N is a smaller high growth company. BSX-N is a market leader but recovering from a few years of bad management. He has a low $40s target in a year. He would stick with it.
biotechnology / pharmaceutical
WEAK BUY
Teleflex Inc.
BSX-N vs. TFX-N. TFX-N is a smaller high growth company. BSX-N is a market leader but recovering from a few years of bad management. He has a low $40s target in a year. He would stick with it.
electrical / electronic
WEAK BUY
Enbridge
It has issues with pipelines delays. A big factor is a 6% dividend yield and growing 10% in each of the next couple of years. The street credibility in their ability to raise the dividend is suspect because of debt levels. He feels the stock might drift into the mid $50s in 3-5 years but not everyone on Bay street is convinced they can keep raising dividends like this.
oil / gas pipelines
HOLD
Ford Motor
They announced they are getting out of cars in North America to focus on pickups and SUVs. In rural areas gasoline driven vehicles will be around for a long, long time. A pickup truck is a must if you are in the trades.
Automotive