2017 saw the lowest volatility and nowadays it is mean-reverting. We had 10 years of very low interest rates. When the central banks take away this liquidity, that results in a lot of volatility. Historically, when central banks pause (or reverse rates) it's scary, and central banks are doing that now. When the cycle turns (which he believes is happening now), who will buy the riskier assets out there? This worries him, referring to the October 2018 sell-off. He feels the credit cycle has tipped over, and in a year from now there'll likely be a Canadian recession, and within two years a global one. He expects more downgrades coming in the next earnings season. It's not the time to panic-sell, but when you see a rally in the market, lighten up your stocks.

It looks cheap and the balance sheet is not distressed. He likes it here. The risk/reward is good. They have quality crude and get better pricing than its Alberta peers.

Not his favourite cannabis stock. They've diluted shares and are buying another company, which tells him that they're buying with stocks, not cash, which tells him that management believes their company is overvalued. ACB is very high compared to its peers. He's shorting it.

(A Top Pick Mar 26/18, Down 30%) Also a top pick, so he'll comment there.

It'll do well in the market he forecasts--a difficult one, and investors will bid up stable companies like Fortis that don't depend on cyclicality. OPne of his biggest holdings.

Precious metals will be a safe sector in the coming cycle (economic weakness). SIL has one of highest-grade silver developments in the world, and a prime takeover candidate.

Taking a counter-cyclical view, Husky is investing upstream. His best guess is that the Husky closes. It's unlikely there'll be a white knight for MEG.

Not his favourite in this space, though he follows it. because it's a Canadian company selling into U.S. aerospace, it could suffer American protectionism. He prefers HRX, though they're both good companies.