In his TFSA for income. The prinicipal should be there upon maturity of each bond unless the issuer is in trouble. If the ETF is actively managed, this impact should be minimal. ZHY is exposed to the USD. The bond yields have been an attractive 5-6%. This trades like a stock, containing equity-like holdings. High-yield bonds are the basket of the worst corporations with poor balance sheets. The growth part of a TFSA should not be investing for yield. Hard to say if ZHY is appropriate in this context. But in a bear market, you'll lose 20% of value here.

For TFSA or RRSP? (Berman manages ZZZD-T) He turns over the holdings twice a year. For example last week, to play defence he bought US long bonds. Another example: A month ago he sold into the rally, and last week as rates backed up he added his exposure. TFSA or RRSP? Both/either. ZZZD-T offers long-term growth, paying 4-7% average returns with a lot less volatility vs. the overall market.

International dividend payers are a lot higher than those in North America. The S&P yields below 2%; European payouts are over 3%. Given foreign withholdings, Canada is still the best place to invest for dividend payers in taxable accounts. It depends on your goal. He prefers ZWP or ZWE, which offers a covered call overlay to enhance yields in Europe (he's a defensive investor).

This holds gold but writes calls. The more chopp gold is, the more this will be called away and you will buy back at a higher price. In other words, this won't perform well during gold volatility. This is good for paying yield. Instead, buy pure exposure with CGL or GLD.

How can there be such low unemployment rate in North America in a late cycle? The unemployment rate was extremely low in late-2007 on the eve of the Great Recession and this is historically normal at the end of a cycle. The difference today is the inflation pressure. Late-cycle and full employment should push up wages that forces the central banks to raise interest rates. This time, the Fed went from near-zero to 2.5% which is less than half in a typical tightening cycle. This cycle is very different from the past, leaving the future uncertain.

Educational Segment. Has tech peaked? Paul Desmond wrote a white paper on market tops. He said there are four characteristics including the difference between large, small and mid-caps. By far, tech has been the leading market sector, outpacting the S&P by 10% as seen by comparing the VGT (338 tech stocks) vs. the broad U.S. market. FB and MSFT lead the FAAANGs year to date as Google starts to break down; the other FAANGs are seeing market tops. The large tech stocks make up 95% of this sector while the small-caps are breaking down this year. This is a classic signal of a late-cycle.

Market. Central Banks with firing of the central banker in Turkey. There are parallels going on here. You have always seen techniques going on with truly overt government techniques. The government lowering rates is not going to work. You have this massive debt in the world and low interest rates, so we have to rethink policies on how to stimulate in the world. He likes that Trump makes it easier for businesses to do business. When you look at the FANGs, APPL-Q is not expensive. There is a the swath of hold recommendations so there is quite a bipolar recommendation developing.

Gold stocks don’t generally pay a dividend. Horizons and a few others shave come out with ETFs where they write options and take the premiums. Over the last 5 years there is a loss but if you compare it now, you get a much lower return compared to the appropriate index.

The master limited partnership trust. The yields are very high because they pay all the yields of the holdings out. We will be very well supplied in the US for oil. Sell at $11 and collect 6-7% for Canadians in yield after tax.

The impact is going to be a big part on the pipeline component. Utility stocks have never been more expensive globally. It is fully valued. He would buy it at $12 or even close to $13 and would recommend it at those prices.

GOLD. ETF or Income Fund. GLD-N is the biggest gold ETF and is the one he uses. There is an iShares one (CGL-T) to play gold with a currency hedge. He is fine with ETFs.

Educational Segment. We are at one of those magical market points where we are at a round number. We are nearing 3000 on the S&P. The psychology of the big round number… The DOW has been around longer. The S&P-500 is about 40% of the world in equities. So it is the benchmark of the world. The top is probably in but we made a new high here. The percentage of stocks lifting the market recently is shrinking and this is a sign of weakness. It is nothing to celebrate. Don't suffer from the fear of missing out.

Market. He does not think there is anything more important going forward than the trade issues between the US and China. There is an important dinner meeting Saturday night and we will see how that goes. Trump is being urged to take a very hard line on theft of intellectual property. Any deal that does not include China admitting this exists and how they are going to get rid of it will be judged as a soft deal and a non-win for Trump. This is going to become a political issue going into 2020. Trump wants a rate cut. China has less risk in the talks and more staying power. But technology companies in China are going to hurt US suppliers. Regarding Iran, diplomatic solutions are always the best. Trump was initially against war but he is adamant about doing deals and putting his stamp on things. There is always going to be a hot potato in the middle east and that is never going away. Gold prices have soared on the geopolitical tensions, the Fed easing again and the weaker dollar. All of that is bullish for gold and it is one of his biggest equities.

High yield bonds are an equity part of your portfolio even though they pay a dividend. It is a basket of the worst quality balance sheets in corporate North America. It is very high risk from a price perspective. The realized default rate even in the great recession was about 10% or so. So when the bonds do go bad, it is about 10% of the companies that are affected. So long as you think about it as an equity-like risk, then he has no issue with it. He has no issue with holding it indefinitely. This one is hedged to the Canadian dollar.