I did a late night webinar for the Whiterock Shareholders club in BC last night. One question that came up was my outlook on Canadian bonds. The Canadian bond outlook is rather important for investors who play the TSX. That’s because the TSX is concentrated in a few sectors that are largely bought by retail Read More
Long bonds vs. dividend stocks for income investors
This summer, bonds were the way to go. The TLT, for example, rode a wave up as the Fed eased, while trade wars and Brexit pushed money into safe assets. We saw a bump in utilities, telecoms and other dividend payers too. Now, we’re starting to see a reversal in some of this risk-off trade. Read More
Sentiment speaks: looking for buy/sell clues
Anyone who follows sentiment studies will know that crowd sentiment is considered a contrarian indicator. When “everyone” loves a market or security –it’s time to sell. Conversely, if “everyone” hates it—it might be time to buy. Baron Rothschild once said that the time to buy is when the blood is running in the street. That’s Read More
Crowded trades
“Markets are well-known for herding and that’s the story at the moment. Two big crowded trades are clearly government bonds and the US dollar. And history shows that when a herd gets too big, the risk of a stampede that splinters the throng only grows.” Larry MacDonald I’m a fan of Larry MacDonald’s work. Read More
Got junk?
My friend Brooke Thackray writes a newsletter that ties his macro technical views into seasonal plays. Brooke, for those who don’t know him, is one of the original people in Canada to study seasonal trends. In fact, I met Brooke some 20 years ago after I read his first book – Time In – Time Read More
Rotation of the guard?
Given the correction we seem to be getting – which was indicated as likely on my blog last week – I thought I’d look at the major US sectors to see how the defensive names are doing. That is, how the utilities and staples, might be faring. Sometimes you will see an initial move into Read More
James Bond. Licence to kill?
Who’s your favorite James bond actor? For me, it’s a close three way tie between Sean Connery (of course!), Pierce Bronson, and Daniel Craig. Not sure who’d I’d have to say my favorite was or is – each has merit. This summer, we get to see a new Bond movie with Daniel Craig AND Read More
What to hold when stocks fall
A bear market can be identified by the break in some technical parameters, as I have discussed in my book Sideways (lower lows, lower highs, a break of the 200 day SMA). Adding to the evidence of a break in trend, your analysis may also been aided by observing the negative correlation of some other Read More
US bonds rolling over, Canadian bonds questionable
After a summer of relatively good performance, the US long bond looks to be breaking down. We sold our 5% position in this sector on the expectation that risk is now greater then reward potential. Seasonals end in early October for bonds, but it was the chart that gave us the nudge out of the Read More
Don’t ignore the long bond uptrend
The US long bond, as illustrated by the $USB 30 year bond price chart below is still trading within the bullish trend channel that its been contained to since 1990. I got into this business in 1990, and my formative years were spend sitting beside a former pro bond trader from Sri Lanka. Hiran was Read More