Markets sold off today, but he won't make predictions--they're usually wrong. But if you need to change the structure of your portfolio, then do it now. With low interest rates, there's nowhere to go except stocks, especially tech and interest-sensitive ones. European stock indexes are actually up 23% this year, so don't avoid Europe. It's important to diversify across all sectors and areas....Cash in 2020: Nasdaq is trading over 30x multiple; tech now is like tech in 1998; don't go full bore into tech, but take some profits. Also, don't be 100% cash either; have cash in case markets fall. Markets are toppy.

A small cap medical device company, only US$400 million. They're good at what they do, but it's volatile. Use limit orders. He's owned this since $100/share, and has bought on pullbacks. They have new products in the pipe, but there was a slowdown in the supply chain recently. Dividend is growing by 10-15%. Organic revenue growth around 5%. Start with a half-position with the current toppy market.

In their October report, earnings missed by 10 cents/share. In North America, MCD is cannabilizing their menu; with all-day breakfast, then what about lunch and dinner? He doesn't like food retailers in general. Decent dividend growth, but flagging sales are a red flag. Meanwhile, peers are building new stores internationally.

HEI is picking up contracts that Boeing is losing. HEI hasn't had an accident in nearly 50 years. But this stock price went too far, too fast, so he sold half his holding to balance his weighting. A solid business. Enter with a half-position. You'll get 20% annual dividend growth. It's risen 10,000% since 1970, on par with Amazon. Likes this company. Buy on 20% weakness, too high now at 42x earnings.

How often should I rebalance my portfolio? He's not an active trader; since 2016, he rebalanced Shopify twice, Heico once, and Cognex once (i.e. selling half when a stock climbs high). That's it. Rebalances enhances returns long-term 1-2% annually that (compounded) adds up over time.

Organic growth is roughly 5%; the medical segment was 10% this year. They have a long runway ahead. Tuck-in acquisitions are important, too, because it increases market share if they buy a competitor. Free cash flows are rising so the dividend can grow 15% a year; invest in R&D; and the rest in acquisitions. Now is a good entry point.

(A Top Pick Dec 07/18, Up 66%) Nobody wanted to buy British stocks. Around 60% of Halma's revenues come outside the UK, so they're paid in other currencies as the pound falls--profits then rise. They make smoke alarms/detectors. Strong long-term potential, though no one has heard of it. Dividend is growing 17% annually. But earnings are above 30X and he'd be more comfortable at 20-25x.

(A Top Pick Dec 07/18, Down 1%) Not a bad return, given what's happening in Latin American markets this year. FCFS runs American pawn shops, as well as in Mexico and South America. They grow at 5% organically; dividend rising 10-15%. But nobody wants to invest in Latin American which holds back this stock. A plus: it isn't correlated to US banks. They also benefit from the rising gold price, since people pawn gold a lot. This is how he invests in gold.

(A Top Pick Dec 07/18, Up 19%) It's the best-run grocery chain in Canada in terms of allocating capital and running their stores. It boasts 10% dividend growth over time. He holds this in TFSAs.

Gold strategy? First, what percentage do you want to invest in stocks, bonds, real estate, precious metal, currencies, etc? This determine how much gold you want to buy--a gold and silver stock or an ETF, for example. Don't just roll the dice on a gold stock. Consider your goals and investing style. Maybe allocate 5% of your portfolio in gold, like buy gold itself and store it away. ETFs mean you pay that MER, which is giving away a lot. More than 5% means more risk and volatility--can you handle that?

Raytheon has been the winner in defence this year. GD, though, has no growth; their backlog fell in the last quarter. But aerospace revenues were up and they improved their margin. Combat systems revenue was up 14%. IT down 11%. Guidance hasn't changed vs. peers who expect the government to increase spending. Ethically, he isn't in this sector--he doesn't want to own arms and weapons. GD is in the middle of the pack.

Last quarter's bank earnings were weak. Loan loss provisions are starting to rise and are not offset by loans and mortgages. That's across the bank sector. The BOC is stuck: it can't raise or cut rates. TD is up 8% this year and trading at 11x earnings. Yields near 4% as it continues to grow at 10%. Buy a half position only, then see what happens in the next quarter.

They mostly run east-west and are commodity-oriented. So, if oil shipping declines, so will CP's earnings. The rails are a bet on the Canadian economy continuing to do well and we don't fall into recession. But if markets drop 20-40% and the economy tanks, so will rails fall.

They enjoyed big returns this year, better than its FAANG peers. This isn't due to iPhone sales, because they're declining, but rather the services sold on top of them. It trades around 20x earnings; only 12x a year ago. We've seen the big move and he expects this to decline next year. Dividend growth is an average 7%. At best, buy a half-position. It's a crowded trade.

Their last earnings missed by 10 cents and revenues were down 15% due to lower production and commodity prices. Also, headwinds with weather delays (we ground conditions) and production was down in Holland, Germany and France. Very risk. Instead, look at the bond, which aren't investment grade, but pay a 7% yield, trading around $92 with a coupon of 5.75, maturing in under five years.