Q: The markets pre-COVID were rising at a reasonable rate year to year, with the odd market downturn. Since March/April 2020 the markets have shot up and stocks are trading at much higher multiples than pre-COVID. Eventually, reality may kick-in. There are many companies trading at very high evaluations. If you look at the overall market (i.e. Nasdaq) you see an exponential growth curve for the past 18 months, definitely not sustainable and possibly overpriced.? I still buy stocks but sometimes feel that if the market turns around, it could be years for it to come back. (I am more concerned about companies such as SHOP, NVEI, TTD, LSPD, NVDA, TOI, UPST, ... all of which are great companies but if we overpay, payback could be much more than 5 years.) I thought same about Netflix, I was totally wrong and missed out on one of the biggest lifetime opportunities BUT there must be a point where the price is definitely too high. Are we overpaying? Will we regret this at some point? Your thoughts? Thanks.

Q: Hello Peter

I sold recently almost 50% of my US stocks:ADBE,AMZN,TEAM,NFLX,MA & MSFT from my unregstr. acct. and I do not want to keep cash and I do not want to buy US stocks.

Please provide me with idea of 5 Canadian stocks that are reasonably safe and be kept for 2 to 3 years, or 2 Canadian stocks very safe with little growth.

Q: After its earnings release, would you consider NFLX is now close to the status of a mature enterprise? Still worthy of above-average multiples , but with a P/E that could be justifiable around 25, and likely not today’s sky-high multiples.

1. What is your thinking on this, after last night’s results? Would you be of the mind that NFLX share price will from now rise very modestly ,or even remain flattish, over the next 3 to 5 years?
2. At the time of sending this question, I don’t yet see any updates of analyst ratings but perhaps they will be available at time of your answer. Post latest results what do you see as PEG, forward P/E and, if available, growth/contraction in global revenues?
3. Do you think today’s sell off in NFLX is an opportunity to add? Would you top up on a half position, or liquidate?

Your opinions have always been valuable and most helpful. Thank you.