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COMMENT
COMMENT
September 16, 2020
Artificially inflated market? January started quite strong. Then Covid was just in China, but it spread and brought the market down by about 35%. Governments stepped up and moved a ton of stimulus into the market. So now we're up 61% from the March lows. A bit of wind has come out of our sails, but we're up from where we started at the beginning of the year. Not out of the woods. No vaccine, no clear communication on long-term stimulus, threat of a Canadian election, and the US election. Valuations are quite high. Plus, certain pockets have rampant speculation. Next 6-18 months are going to be critical for preserving capital. You should be happy if you're even or a little bit up on the year.
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General Market Comment
September 16, 2020
Artificially inflated market? January started quite strong. Then Covid was just in China, but it spread and brought the market down by about 35%. Governments stepped up and moved a ton of stimulus into the market. So now we're up 61% from the March lows. A bit of wind has come out of our sails, but we're up from where we started at the beginning of the year. Not out of the woods. No vaccine, no clear communication on long-term stimulus, threat of a Canadian election, and the US election. Valuations are quite high. Plus, certain pockets have rampant speculation. Next 6-18 months are going to be critical for preserving capital. You should be happy if you're even or a little bit up on the year.
COMMENT
COMMENT
September 16, 2020
Considerations for preserving capital. 1) Forward returns are a function of what you pay. 2) Use time to your advantage and hold for a long time, rather than trading. 3) Have some cash on the sidelines to take advantage of opportunities. Always have a wish list at the ready for market downturns.
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General Market Comment
September 16, 2020
Considerations for preserving capital. 1) Forward returns are a function of what you pay. 2) Use time to your advantage and hold for a long time, rather than trading. 3) Have some cash on the sidelines to take advantage of opportunities. Always have a wish list at the ready for market downturns.
COMMENT
COMMENT
September 16, 2020
How do you choose a company to invest in? There are 7,000 publicly traded companies in the world, and their firm runs 20 different screens. The most important is free cash flow growth. With that, you can invest in R&D, do acquisitions, pay down debt, buy back shares, or pay a dividend.
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General Market Comment
September 16, 2020
How do you choose a company to invest in? There are 7,000 publicly traded companies in the world, and their firm runs 20 different screens. The most important is free cash flow growth. With that, you can invest in R&D, do acquisitions, pay down debt, buy back shares, or pay a dividend.
COMMENT
COMMENT
September 16, 2020
What happens to my stocks when the company is bought out? There are two scenarios. One is that you get shares of the acquiring company instead. This way is often used if the purchasing company's stock is overvalued. The second way is that you get straight cash, the method used often when the purchasing company's stock is undervalued.
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General Market Comment
September 16, 2020
What happens to my stocks when the company is bought out? There are two scenarios. One is that you get shares of the acquiring company instead. This way is often used if the purchasing company's stock is overvalued. The second way is that you get straight cash, the method used often when the purchasing company's stock is undervalued.
COMMENT
COMMENT
September 16, 2020

Billy Kawasaki’s Insights - Picks from 5i Research. The upcoming throne speech should not affect how people manage their portfolio since it would just be a guess on what might happen. Infrastructure companies should benefit from increased spending on large scale projects. Tax rates and rules are not expected to change. Unlock Premium - Try 5i Free

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General Market Comment
September 16, 2020

Billy Kawasaki’s Insights - Picks from 5i Research. The upcoming throne speech should not affect how people manage their portfolio since it would just be a guess on what might happen. Infrastructure companies should benefit from increased spending on large scale projects. Tax rates and rules are not expected to change. Unlock Premium - Try 5i Free

COMMENT
COMMENT
September 16, 2020
Big financial research institutions drive markets; the Fed doesn't as it appeared today after Powell's comments. These big companies hold morning meetings to pitch certain stocks as buys and hold and occasionally sells. Covid changed the way the US does business. E-commerce has soared. FedEx, for example, has soared on delivery packages because of e-commerce spikes. But this is a zero-sum gain for those thriving sectors. A FedEx exec said in an investors' call because spending has shifted from the service industry into other sectors like goods. Is the US turning into a manufacturing economy or the service industry is in a downturn (temporarily)?
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General Market Comment
September 16, 2020
Big financial research institutions drive markets; the Fed doesn't as it appeared today after Powell's comments. These big companies hold morning meetings to pitch certain stocks as buys and hold and occasionally sells. Covid changed the way the US does business. E-commerce has soared. FedEx, for example, has soared on delivery packages because of e-commerce spikes. But this is a zero-sum gain for those thriving sectors. A FedEx exec said in an investors' call because spending has shifted from the service industry into other sectors like goods. Is the US turning into a manufacturing economy or the service industry is in a downturn (temporarily)?
COMMENT
COMMENT
September 16, 2020
Why did the Nasdaq sell off today? It sold because investors sold their FANG stocks and bought the IPO, Snowflake, which turned out to be the most successful software IPO in Wall Street history. Problem is, we're facing a flurry of tech IPOs this fall and we will see more of this sudden tech selling. (The only big tech name that didn't get hit today was Salesforce.) The buying is healthy for these tech IPOs, but unhealthy for tech stocks as a whole. Beware.
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General Market Comment
September 16, 2020
Why did the Nasdaq sell off today? It sold because investors sold their FANG stocks and bought the IPO, Snowflake, which turned out to be the most successful software IPO in Wall Street history. Problem is, we're facing a flurry of tech IPOs this fall and we will see more of this sudden tech selling. (The only big tech name that didn't get hit today was Salesforce.) The buying is healthy for these tech IPOs, but unhealthy for tech stocks as a whole. Beware.