Q: What are your thoughts on the market right now?

• I’m in the camp that things are getting better (sneaky bull market no one wants to acknowledge or is ready for)

• When you look across all the different sectors, you can see that stuff is working again

• I think the market is saying that the worst may be over

• I don’t think most market participants are ready for this - everyone is defensive

 

Q: Thoughts on Tech?

• Tech companies are making tons of money

• Tech companies are cutting costs which makes me bullish

• Stocks are down a ton and expectations are incredibly beaten up

• Every investor is sitting there waiting for the end of the world because that’s what they’ve experienced during the other two recessions in the last 20 years

• The market is telling you it’s time to get bullish

• We’re getting to that point where it’s time to start adding risk to portfolios

• I’m not telling you to go out and buy your favourite meme stock (still risk out there)

 

Q: Would you describe your investing style as positive change?

• I’m focused on positive change - what’s getting better

• Companies I like to own have moved from high expectation to low expectation

• The most exciting move in the market is when those stocks go from horrendous à bad

• That’s when you make all the money

• Tech companies are firing people and calling it “restructuring” or “reduction of force” and when they do this their stock price goes up

 

Q: Thoughts on consumer discretionary?

• Buying

• Consumer discretionary stocks are the most shorted on the planet right now

• What if the worst-case scenario doesn’t happen? Stocks are going to react to that and are going to go up

• Look at PulteGroup, Inc. (NYSE: PHM)

• They’re a residential home construction company

• Their stock bottomed in October and has doubled since then

 

Q: Thoughts on health care?

• Health care is your classic defensive sector

• I don’t think there’s a ton of money to be made in health care

 

Q: Where are you playing offense?

• It’s all over the place

• It’s actually very similar to my Top 10 Holdings in December 2021 except right now, all those stocks are 50-75% cheaper

• I don’t think that owning the S&P 500 is a winning strategy in this market

• I think the broad market is going to continue to churn with a ton of opportunity underneath

 

Q: Thoughts on financials?

• Like financials right now

• I haven’t liked the banks for a long time

• Canadian banks are pretty cheap

 

Q: Are you still interested in energy and materials?

• It isn’t a big part of my portfolios anymore

• Energy had its big relative move in history

• A lot of people are sitting there holding energy right now

• I don’t think it’s going to be the best performing sector

 

Q: What are you watching in the markets?

• I’m watching inflation and the path of interest rates

• The pattern of behaviour among stocks and sectors looks very constructive

• I’m also watching the price of oil which leads inflation

• I think oil could go lower

 

Q: What about industrials?

• Industrials have been a great group

• They’re benefitting from a lot of tailwinds

• Industrials is a stock picking group - there’s always something to buy and there’s always something to sell

 

Q: Thoughts on semiconductors?

• These stocks are moving quickly

• We need semiconductors for basically everything we do

• They’re no longer going down on bad news which probably makes them all buys

 

Q: Where do you see market leadership?

• Energy was the leadership for the last two years

• You can see it losing its edge now

• Technology and consumer discretionary have been beaten down so bad

• The market is saying that we’re going to have a garden variety recession and so these stocks are all buys

 

Q: What kind of stocks are you looking to own?

• I’m an omnivore

• I’ll own any stock, in any sector, in any size, in any country

• It really doesn’t matter

• I just want to own great companies