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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Retired dividend-income investor. Now that there is a bit more certainty regarding the outcome of the USA election, can you provide an update as to the "big picture" investment world for the next year or so?

We kept hearing there were basically 3 big issues = USA election, Covid and its related vaccines, and the timing/amount of USA stimulus. Impact from the split Congress? Impact on the severity of Covid and the timing of potential vaccines? Amount of USA stimulus in the near term?

I read the odd question about the potential for a 20% correction on the horizon. There is always a correction around the corner, but do you see us getting back down the the March 2020 lows again?

I'm currently sitting on roughly 6% cash and have been deploying $ into the markets on a steady state basis for the last 4-5 months. Just wondering your thoughts? I was planning to carry on with this strategy, but wanted your crystal ball views first.

Thanks...Steve
Read Answer Asked by Stephen on November 10, 2020
Q: I'm interested in your take on the likely effects on the markets of the two major significant events that have coincided: Pfizer's positive announcement regarding its vaccine, and the Biden victory.

Regarding the former, some commentators are suggesting that, after many false starts, there is at least a shortish term tradable opportunity in value over tech/momentum, partly inspired by a rotation out of the stay-at-home trade and a move into the Covid19-bitten cyclicals. Given that such a rotation would have to overcome the current vulnerability of under performing value stocks to tax loss selling, do you concur in this view, and if so, which sectors in value would you suggest have the most potential?

Regarding the Biden victory, how much of the clean tech trade do you think is already reflected in the market? Given the less confrontational world view of Joe Biden, would you now view the markets of China, Europe, and even Canada more optimistically? What else does the Biden victory (or the Trump loss) bring to the trader's table?

While I'm sure you wouldn't advise over-reacting to political events or corporate announcements, the transition from authoritarian to democratically-inclined leadership in the world's most influential country, in addition to a potential cure to a devastating pandemic, are not run-of-the-mill occasions. Assuming this new world is permanent and Biden's victory stands (most likely) while Pfizer's vaccine has no hiccups (less likely), an analysis of how one might adjust investing strategy, no matter how incremental, would be appreciated.
Read Answer Asked by Rupert on November 10, 2020
Q: With recent vaccine development and big price drop on Monday , I am wondering what stocks are good to buy . Can you please rank them according to potential. Thanks a million.
Read Answer Asked by Lai Kuen on November 10, 2020
Q: Could you provide 5 or 6 names of solid/dividend paying companies that took a hit from tax loss sales in Nov. 2019 timeframe? (if there were any)
Thank you
Read Answer Asked by Delbert on November 10, 2020
Q: Hi, is this a material negative development for ALA? Thanks.

“The U.S. Fourth Circuit Court of Appeals issues an immediate stay of Mountain Valley Pipeline's stream and wetland crossing permits in southern West Virginia and Virginia. The order will block construction across waterways for months while the appeal plays out.”
Read Answer Asked by Gary on November 10, 2020
Q: Hi,
I am sure we can all agree that we do want a vaccine against this ravaging virus. However,Dr. Scott Gottlieb, a former FDA commissioner, told CNBC the vaccine could be available in limited use as early as late December and widely available by the third quarter of 2021.
In the meantime, gold stocks are taking a beating and that includes stay at home and online learning type of stocks.
Is the market rally premature? What happens from now until the 3rd quarter of 2021? Do we all just start going about our lives like there is no virus and pretending that the economy will adjust and every Tom, Dick, Harry and Ilie will be booking the next available flight to Vegas?
I am of the opinion that the Fed will have to continue inflating the money supply.
Are the above mentioned type of stocks that are selling off today, 10% and more , overdone?

Thanks,
Read Answer Asked by ilie on November 09, 2020
Q: Are there any stocks in the battery space related to electric cars, that you would recommend at this point. Secondly of the companies that are producing electric cars are there any that stand out as a good investment, in your opinion. Any market cap is fine. This could include an ETF. Thank you.
Read Answer Asked by Rob on November 09, 2020
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