Market Outlook - He is finding much more pessimism in his clients meetings. Many people asking: is a recession coming? Pessimism is pronounced. Pessimism is intellectually seductive. There is an asymmetry in gain vs losses. That is why he uses stop-losses where possible. Diversification is a big tool and so a balance between aggressive / defensive. We just had a 20% correction. It wasn't as bad as 2009 but close to 2011. You have to take advantage of those situations. He would argue that in his years of career most money has been lost on opportunity costs or being too defensive preparing for a corrections than in the actual correction. The Market is a big world. Unless you are completed committed to a monthly contribution for 20 years then he is not for passive investments. The inverted Yield Curve is a little misleading and a recession could come after 8 months to 3 years after the inversion. Also some people are picking the points in the curve. Also some people are fitting this event to their negative narrative as there has been cases where no recession came after an inversion.

Financials is a big scratching head at the moment. This particular bank is not faced with the pressures of the retail banking in general. Used to be an investment bank leveraged 30 to 1. Everything that it used to do to eke out high torque on their profitability seems to be muted a little bit and without the leverage that they used to have. He has been bullish in financials prematurely. Trading below book value. Jury is out on this one.

Just bought it in January. He would still adding for the yield predominantly.

Canadian banks in general are strongly managed from a risk perspective. They are not a black box. People around the world look at headlines. Financials is 25-30% financials. He is only 5% weighted on Canadian banks. Not because he is negative on them just he likes better other areas of the market better. Just don't be overweight banks.

(A Top Pick Apr 05/18, Up 19%) They target the data center like Cisco. He got stopped out in the downdraft in September. He made quite some money with it in the last couple of years. Goldman Sachs just recently added them to the conviction buy list saying that they are growing at a much faster rate than any of their competitors.

(A Top Pick Apr 05/18, Up 25%) An example of a name in retail. Around 60% Ontario and the rest around the country. Now growth might be muted. He would still buy it for the yield.

The real growth story for them is Instagram and WhatsApp. There are privacy concerns but he thinks it will come on the other side of this looking even better.

It got just added to the TSX 60 index. A few short stories on it but still continue to rise despite the negativity.