Defensive sectors offering big yieds and some growth have underperformed of late, but they're starting to look okay, especally if you have a long-term view. However, consumer staples are the worst sector, stocks like P&G and Colgate.
But he likes Couche-Tard. He owns only two Canadian banks, TD and Scotia, because they are the least "Canadian" banks given their foreign operations. The banks have been discounted given rate hikes and the cloudy real estate market in Canada.

Market Outlook. Looking ahead for a positive return for the TSX for the year. 6-7% and half of that dividends so no enthusiastic. The economic background is positive. We haven’t even seen the economic impact of the tax cuts in the US. With the new depreciation rules – writing off everything – would be surprised to see growth below 4%. On NAFT he changes his mind from day to day on what is going to happen. But in North America things are OK. Europe is another story. More concerned about what is going on there. He wouldn’t be surprise if the whole Brexit s turned and the UK decides to stay.

Holding ETFs vs individual stocks. The ETF advantage is that you are getting diversification. The problem is that they have multiplied like rabbits. So many now that you have to be careful. Stay with the ones that give you representation to the larger space.

Market.  There is uncertainty with the discussions between the US and China.  He thinks investors should just dig down to fundamentals.  In Canada almost 57% of companies matched or beat on earnings and 59% beat on revenue.  Companies are looking strong and Canada is looking interesting.  The Canadian dollar is stable although weak so our exports look cheaper. [Today's show started late, leaving room for only one opinion before Past Top Picks.]

Market Outlook. We are seeing a seesaw pattern with the markets Very solid economic numbers coming from around the world. Fundamentals look good. On the other hand, we are worrying about interest rates coming up. We worry about geopolitical tensions. We worry about a potential trade war. The long-term side of the yield curve is going to get close to the 4% level (he thinks). Stocks are going to continue to outperform bonds. Canadian banks continue to roll on nicely. With Trump there is always this pattern of big words, angry words and negotiations afterwards with much calmer policies. Keep a big bottle of salt in your cupboard because you have to take everything with a grain of salt.

What is a half position or a full position? In equities if you have 20-25 names and you have equal weight you are going to have 4 to 5 % on each name. That is a full position. Half position is 2% to 2.5%. He just goes for full positions. He does a lot of research.