Keith Richards, president and chief portfolio manager, ValueTrend Wealth Management
FOCUS: Technical analysis
Top Picks: Arc Resources, Global X Silver Miners ETF, Berkshire Hathaway
MARKET OUTLOOK:
Major market indices recently hit new highs. Major moving averages are supporting these levels and are pointing higher. Momentum indicators are not overbought and are above their middle lines. Market breadth looks healthy, and sentiment indicators are not showing excessively optimistic investor behaviour. On top of all of that, we are in the seasonally best six months of the year.
Sure, one could argue that valuations are high at 30 times trailing price to earnings ratio (PE). But if we look at the last three major market crashes (2000, 2008, 2020), we will note that PE ratios got considerably higher before the damage began.
Technically, its hard to argue with this market. At least for now.
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TOP PICKS:
Arc resources (ARX TSX)
Breakout.
Global X Silver miners ETF (SIL NYSE)
Testing support on a pullback near $36.
Berkshire Hathaway (BRK.B NYSE)
Uptrend, a more conservative way to own the SPX with a value and cash component built into the fund.
| DISCLOSURE | PERSONAL | FAMILY | PORTFOLIO/FUND |
|---|---|---|---|
| ARX TSX | Y | Y | Y |
| SIL NYSEARCA | Y | Y | Y |
| BRK.B NYSE | Y | Y | Y |
Past Picks: AUGUST 26, 2024
Ford Motor (F NYSE)
- Then: US$11.11
- Now: US$11.39
- Return: 2%
- Total Return: 4%
BMO EW Glbl Base Metals ETF (ZMT TSX)
- Then: $67.46
- Now: $73.60
- Return: 9%
- Total Return: 9%
VanEck Oil services ETF (OIH NYSEARCA)
- Then: US$304.72
- Now: US$305.05
- Return: 0.1%
- Total Return: 0.1%
Total Return Average: 4%
| DISCLOSURE | PERSONAL | FAMILY | PORTFOLIO/FUND |
|---|---|---|---|
| F NYSE | Y | Y | Y |
| ZMT TSX | Y | Y | Y |
| OIH NYSEARCA | Y | Y | Y |