Adam Thomas

Market. WHY-X put out a news release that suggested someone would buy their deposit in BC. The company surged and was halted, then the deal fell apart. You have to be careful about this. He cannot believe the kinds of things that go on in this market.

When the economy is strong, cyclical sectors tend to outperform. He thinks we are very late in the economic cycle. It could end any time now. You want to be underweight cyclical late in the cycle. When the market is down and the bad news is priced in, then that is when to overweight these. Don’t add to industrials right now.

It is a great way to play the big techs, but now is not a great time to get in. The covered calls mean that if markets go up a lot you may not participate properly. He likes the ETF, but tech stocks are not a great place to be right now.

We are never going back to coal. Everyone has moved off it, despite what Mr. Trump happens to say about it. If it gets back down to the $39 area he might be tempted to play it, however.

Educational Segment. Demographics. You have two natural drivers of growth: Growth from population growth and growth from productivity growth. From the sum of the two we get about 1.3% growth in the world. We have a growth problem, despite all the money being spent in the world. We are in a low growth world. The vast majority of the growth in the world is from China, India and Africa. But China is near finished growing. AFK-N and INDA-N are ETFs he likes. Buy on pullbacks.

It is priced in US$ so you have currency exposure. Last year there was a lot of price decline due to currency fluctuation. This ETF is not risk free. If all the holdings in the ETF go down a lot there is a downside risk. Liquidity is not an issue for this ETF.

Listed in Canada but operations are in the far east. Is cautious because of high debt and accounting is weird. If you are betting gold will go a lot higher it is a pretty decent bet but if not it can decline a lot.

Potential take out candidate. It would be Metro, most likely. A very well run company. With shippers taken out it will be the only guy left. The take out premium has already been priced in. He would wait. Doesn’t like the risk / reward ratio. It would make a lot of sense if PJC took out someone else.