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

People were overly negative last quarter and it didn't make sense stocks sold-off that hard. We're not having a rally off the Fed being more dovish. He predicts 2019 will be a good year. Now, we see a fear of the market moving higher as investors jump back in. The pain trade is to the upside. FOMO. Earnings are 15% YOY growth in the U.S. There's some great news out there. The TSX is off to a strong start in 2019; global growth will only help Canada, where we got so crushed to the downside.

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.