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

Cash position for 2019. Has 20% cash right now, based on the fixed income part of a portfolio. Cash is deemed to be a synthetic short. Pays off when you get a quarter like Q4 of 2018.

Tech, healthcare, or military? Comes down to correlation risk. One tech, one healthcare, one defence, one bank, so you have 30 diversified stocks. For example, if you own Microsoft, don't buy another tech stock. If markets fall, it'll take you years to get back to break even. Correlation risk is the worst thing that people can have.

Thoughts on Brexit? Britain isn't the big empire it used to be. It needs immigrants because the population isn't growing. The British companies he owns are benefiting from the drop in the pound. During the Greek crisis, his companies had no more than 30-40% of revenues from within Europe, so if things blow up, he won't get hurt too badly.

There's a lot of complacency now. The market has been driven by a debt expansion. We've seen massive instability since October. If the economy isn't as strong as they think it is (driven by debt in reality), then liquidity is a problem. Be cautious. Things can come down very quickly. Like the 1930's, we're seeing market volatility, political instability, debts that cannot be repaid and populist movements. This creates chaos. Trim back. He's bullish on gold, the traditional safe haven.

Will uranium be safe this year? He doesn't own it, but 2019 could be its year. The fundamentals are definitely getting there with geopolitics on its side. He'd play Cameco to be safe. He's waiting for precious metals to come back before he buys uranium, which he is monitoring.

Market. The ZZZD-T ETF was launched today and Larry opened the TSX in celebration. This trade war with China started a year ago. Emerging markets have been under-performing until the last couple of months and now are reacting to anticipation of good news. This will motivate the US and China but will not resolve the theft of IP. Ultimately he thinks the recession is still coming. We had a lot of downgrades in earnings projections and that was why we had a down turn in December. Earnings will not turn down yet but will in the future. Except for the effect of tax cuts, earnings are not growing. The S&P is around fair value and so should stabilize for a while.