Market. Almost half of Canadians are very close to insolvency. Larry started working when he was 9 years old so he knows all about this. His family had massive credit card debts. The world is extremely fragile from a growth perspective. Governments need to help the bottom half. He believes the first $40k of income should not be taxable. There are political solutions for hard issues like this that do not put the owness on the bank of Canada. He believes Trump will be impeached. He believes it will be disruptive. He likes earnings season so far in the US. Banks missed on earnings but the market handled it very well. Markets should be okay for a couple of weeks. He was aggressively selling into last week's strength and he thinks there is a bear market coming and we are heading into a recession. China has been running a 15% deficit for the last 15 years. It is the biggest bubble building in history. Interest rates cannot rise very much as we cannot afford it.

2/3rds of the stocks are Israeli stocks. Israel is the original hub of the chip. He loves the play as a long term theme. During periods of weakness it is something you accumulate. He is looking to add it to growth portfolios over the next few years.

Its MER includes the MER of the underlying ETFs. Occasionally they get put some of the stocks and then they sell the stock and re-put the stock. You get a distribution when this happens as a return of capital. Volatility determines how many of their stocks they get put and have to sell.

In an average recession earnings tend to drop 20%. The S&P should go down to 1500, the breakout of 2000 high.

XUS-T Vs. XSP-T. They are S&P exposure, hedged and unhedged. It is a currency call. He thinks the Canadian $ will weaken into the next recession as it has in past recessions. $0.70 is within reach. The closer to 78 cents, you want that hedging. He will add back below that to his US exposure and it will be unhedged.

Number one Black Swan Worry. A black swan is supposed to be something no one is thinking about. Trump's end of term would be one. But over the last few years we doubled the debt in the world without creating growth. The US and China have horrible fiscal positions – Japan also. This is the catalyst for bad economics over the next few years. This would be the Black Swan: a credit problem.

Their core business of boxing and shipping stuff is not making money. This is not why you buy AMZN-Q. It is because they are a disruptor. Buy it when it gets beaten silly. He would not touch it today. Below $1000 it might be a buy.