Gordon Reid

What's happened is that the Fed's moved more toward what the market was pricing, and that's being rewarded by the market in the last couple of days. Good news for market psychology. 

2024 will be a good year, but also challenging. Volatility, economic change and surprises. It's important that investors be well positioned. Owning the whole market will be a little dodgy. You want to be in the right spaces and let the economy reward you through the market.

Absolutely. A month ago, we were just starting to see the beginnings of that. Since then, it's done nothing but broaden out. He's very encouraged by that. 

The Magnificent 7 led most of the performance for the year. Now the other 493 stocks in the S&P are participating. These are unloved, undervalued stocks that represent very good value on their fundamentals. Investors should be there.

Historically, the third year is the best, averaging over 13% growth in the US. The next best is the fourth year, at about 6.5%. 

You can see this as a visual if you go to the relevant e-article at goodreid.com under Insights. It shows that 2023 pretty much represents the historical norm, with a very strong beginning, a mid-summer swoon into the early fall, and then a very strong Christmas rally.

Politicians want to please voters, so as we approach an election, policies that are enacted tend to be voter-friendly. The tough love happens in the first and second years of a presidential cycle.

He doesn't use CDRs, as he likes having exposure to multiple currencies. It's almost like laying on a hedge or another asset class. Canada represents only about 3% of global wealth, so the currency diversification is great for the long term.

His theme for today is that he's really not that hot on the consumer. Of the whole economy, the consumer sector is the most exposed. Though a great company with a lot of good products, branded products tend to suffer when consumers are stretched. Growing about 3-5% revenue, 7-9% on earnings, trading at 23x. Pass. Better opportunities elsewhere.

Really performed well. Best of both worlds: in AI chip space, and valuation is not excessive. He missed this one. Very good company, very good stock. His choice is QCOM, which will do as well over time.

His choice in the space, which will do well over time.

Not negative on it. Well run. $1T of assets employed in the private markets. Will benefit from lower interest rates, could see positive moves off that. Not inexpensive. Watch, try to enter at a lower level.

Compounder. Have to hold your nose to buy at current valuations, but you only have to look 2-3 years down the road to get to a more comfortable valuation. AWS is a driver, and AI will really come to the fore over the next 2 years. Invested heavily in e-commerce, and it's starting to see some profitability, juggernaut of the future.

If you look at successful portfolios, often the root is in relatively few stocks that have done extremely well. Peter Lynch talked about the pursuit of the 10-bagger. So you stick with them. He points to AAPL. In 2005, he bought in around $2.50 per share, adjusted. It's now $197. A wonderful company for his investors.

The closer you can get to the source of information on a company, the better off you'll be.

Would tend to hold in cash account. Growthier opportunities provide more opportunity for capital appreciation, so you get the benefits of friendlier taxation, as capital gains are taxed at an inclusion rate of only 50%. Hold fixed income and low-growth components in your RRSP.

You don't find many companies growing 20+%, with such an attractive valuation in the low 20s. Big $$ spend on R&D. AI contender. Don't listen to the day-to-day noise. Volatile sector. They own Search, so AI is both opportunity and danger, but that's what risk assets are all about.

Within its sector, one of the best on organic growth and margins. Weight-loss drugs are turning people off snacking. Not the growthiest company, trades at a big multiple. With interest rates coming down, investors are moving toward better growth profiles.

These companies are fantastic, but lots of future success built into prices, trading at very high multiples. He tries to take the theme and participate in areas that aren't as expensive. Stays away from the focused, high-risk stocks, because lots has to go right.

Regional banks and anything that's interest-sensitive is doing extremely well today. Trading around book value, good loan growth, still gas in the tank. Exposure to commercial real estate not excessive.