On March 25th I suggested it was okay to buy tech stocks, and featured a couple of ETF’s. I did buy at the time, and have enjoyed a 50% return in less than 2 months.  Let’s face it, with bond yields of .70% (10 year US Treasury) it would take many (or in Trump parlance, many many many ) years indeed to earn this doing it the risk-free way.

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Why sell when the tech sector is back to what it was before the crisis began? Now that Shopify has a market value larger than the biggest Canadian bank, enough is just enough.  Having lived through the rise and fall of Nortel, Blackberry and more recently Canopy I’ve learned the hard way to take a decent return and look for something new.  Ordinarily it takes longer than a few months, but the times they are a’changing.

Shopify-eBay-Amazon-Market-ValueI fully understand why investors are enamored by tech, gold and of course the pharma companies.  What else is there?  However there will come a point at which a recovery in the more downtrodden sectors is on the horizon (it will be awhile though, with plenty of disappointing earnings and economic announcements beforehand) and like Warren Buffet, I’d like to have some cash available for that eventuality. (PS I’ve also trimmed my gold weighting).



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About the Author

Malvin Spooner is a veteran money manager, former CEO of award-winning investment fund management boutique he founded. He authored A Maverick Investor's Guidebook which blends his experience touring across the heartland in the United States with valuable investing tips and stories. He has been quoted and published for many years in business journals, newspapers and has been featured on many television programs over his career. An avid motorcycle enthusiast, and known across Canada as a part-time musician performing rock ‘n’ roll for charity, Mal is known for his candour and non-traditional (‘maverick’) thinking when discussing financial markets. His previous book published by Insomniac Press — Resources Rock: How to Invest in the Next Global Boom in Natural Resources which he authored with Pamela Clark — predicted the resources boom back in early 2004.

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