A Comment -- General Comments From an Expert (A Commentary)

5G Companies. 5G is still 2-3 years away. The installation part of the play is still to be made. Qualcomm, Ericsson, Nokia. Huawei is a market leader. Owns Broadcom (AVGO-Q) which is one of the largest chip maker and very diversified.

Market. Fears of an economic slowdown are easing. Record territory on the TSX and in a lot of markets around the world. The cyclical part maybe not doing well but not scaring people. Growth sectors continue to do well. Thinks the background is favorable for stock investing in the next 12 months. Thinks there is some upside in the FANG stocks with the higher growth. Sees solid 5-10% growth for the next 3 years in the markets. Recently published a report on Asia on their website. Sees upside in e-commerce.

How long can the bull run in US stocks continue? Things can last longer than you think they can. US economy continues to extend and lead the global economy forward. Plus monetary loosening from the Fed is the key to the latest spurt in the market.

How do you reconcile the Canadian economy with that of the US? US is consumer-led, and the consumer is in great shape so they're starting to ramp up spending. Whereas Canada is a trade economy, so the trade war has hurt us. Pipelines are not being built, and we depend on oil as our biggest export, so that's hurt our economy.

How will markets react next week to President Trump's bill supporting Hong Kong protestors? Doesn't give much credence to what comes from Trump. He does a lot of sabre-rattling, and runs international trade the way he ran his own companies. Trade friction has hurt underlying business confidence.

How do headlines affect your stock picking? He's a fundamentalist, so he gives a business a valuation and focuses on that. Tries to ignore the politics, though it is distracting. Short-term, it can really move the markets. Over time, western demoncracy has been relatively consistent in its free market approach.

Where to deploy cash right now? He runs a fundamental, go anywhere portfolio. Invests mainly in North America. Only invests internationally if it's an industry leader in a particular sector. The momentum trade will break sometime in the next year. Forgotten areas of the market which pose tremendous opportunities include energy. Energy consumption continues to increase every year, and oil should stabilize.

Is the new federal cabinet more western Canada friendly? Alberta is hurting. Oil is the biggest export this country has. Hopefully Trans Mountain expansion gets done. The federal government needs to support that industry, and it hasn't.

Canadian banks. Canadian banks have done well over the last 10 years. Stats show that Canadians are living on the edge, and bankruptcies may go up if there's a downturn. Banks are still safe, but you don't want to be overweight. Wouldn't hurt to take some profit, as there's some risk right now.

Market Outlook Many of the REITs out there have narrowed their discount towards their NAV. He sees power demographic factors fueling the apartment sector -- young professionals, many without cars, students, seniors and immigrants are all stimulating demand. There is a shortage of single family lots for new development.

Best REIT for Income? SIA is a $1.2 billion market cap and a 5.1% yield. The timing is good to buy as they had a soft quarter this transitory. They own 7000 long term care residents and 3200 retirement homes. They are well positioned in Ontario, where the government is struggling to incent more growth. It is probably worth $22-$23 per share.

US stocks continue to hit new highs. The market is comfortable now with the position the Fed is taking, and this has been years in the making. Economy showing signs it's going to skirt a recession, at least in the near term. Earnings are not going off the edge of a cliff, it's just a slowdown. But this whole expansion has been very tepid. Because of this, we should have a short and shallow recession. Investors have to be nimble to outperform indexes in this type of market. We're moving away from growth into value.

How long will the bull market continue? He reevaluates every morning for each of his holdings. Don't look too far down the road. Always good to have a healthy scepticism. You don't want to be too far over your skis.

President Trump signs bill supporting Hong Kong protestors. Market reaction? China won't like it. Could throw a wrench into the trade discussions. The trade agreement is a very shallow attempt at common ground. How China reacts will dictate how markets react. If there's a strong belief that this will sully the talks, it won't be constructive for the markets. This is only one event in many events. Trump needs a deal, and we might get a few days of weakness, but he still needs a deal.

We’re 10 years into an economic expansion and bull market. There is slowing global economic growth now. There’s been a run on equity prices while earnings haven’t risen as much. Therefore, valuation is quite high right now.