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Originally Posted by Leondros
With everything going on, what are your thoughts on the following:
1) US:BDX Becton Dickinson is one of the largest medical supply companies in the US and one of the manufacturers of ventilators. Assuming this thing is a long term problem, and given the fact that a lot of health care systems likely are getting a wake up call that they do not have enough of these, I think this has huge upside.
2) CAD:CGL Gold Bullion ETF. Depending on what the Canadian and US governments are planning to do in terms of fiscal support and stimulation, this could have long term consequences for inflation and currency devaluation. Gold has been a safe haven in the past for events such as these.
3) Any Canadian big 5 bank. I think these are super under valued at current prices. These banks are also in the too big to fail group. Only down side here is after 2008 these entities have bail-in debt. Bail in debt is triggered when these banks begin to fail (people can't pay mortgages, car loans, HELOCs, etc.) and are dilutive in the sense of the common share holders as they prevent the banks from failing but they issue shares in-lieu. I think we are a ways away from this happening, but this is the only downside I can see.
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I don't have any specific advice because I don't really trade this way. But one thing is that pretty much all stocks on the large indexes move in the same pattern. ETF trading creates a fairly unified movement in all stocks. I think this may change a bit when the rebound happens because there are stocks that still make money but have been drug down with the rest of the dogs. Find those good balance sheets and hopefully they go up more than the rest of the field.
No to gold. That safe haven myth is done. It's traded like a stock now and reacts completely antithetical to that old way of thinking.
I'd maybe look up some of the therapeutic companies working on covid drugs. It's a bit of a crap shoot but you can also buy the etf if you think the sector will take off with this renewed interest in general.