It's a tough market because corporate earnings are declining, the global markets is softening, yet valuations keep rising. American stocks are diverging from Europe and Japan. Buying the market won't be a good idea with valuations at this level. No doubt that lowering interest rates are driving markets now, but 10-year yields are already down to 2%. Ultimately, you need earnings growth to drive stock prices. The high-yield bond market yields 6% and is in great shape, but to succeed here you need wide diversity across America, so best to use a fund. In contrast Canada is susceptible to commodity bonds and therefore higher delinquency.

They've done an amazing job positioning in the high-end spirits business. It's had a great run but the PE is 26x with mid-single-digit growth. There's little room to grow in this mature industry.

Allstate invests in bonds.Can Allstate make money investing in the premiums? And, is PE or PB a better metric to value insurance companies? Every insurance invests heavily in bonds. The price of bond yields is built into the price of insurance premiums; all baked in. Note that property and casualty insurance is re-priced each year, so PC can absorb losses in bonds. Secondly, Allstate is very disciplined and has enjoying 10% dividend growth in recent years. PB, Allstate isn't expensive at 14x PE and 1.5x PB, which are both key metrics. They are best in class.

A value play in cybersecurity? Kudos to their CEO for turning around this business. Excellent execution. They're in a very competitive space. They aren't a major player--yet. The CEO, Chen, has figured how to survive, but he's not ready to buy this stock.

He's owned this for a decade, not as cheap as it used to be now that it's a Wall St. darling. After years of flat revenues, revenues are accelerating. The software part generates recurring revenues, and that has zoomed. Earnings will grow 10% annually. They buy back stock and increase their dividend. But it's trading near its all-time high.

The sector is suffering because everybody owns a phone. Pays a solid dividend, which should be safe due to strong cash flows, but earnings will shrink. It's in a tough industry.

Upcoming share splits and will list in Hong Kong Share splits have no influence, but listing in Hong Kong will make it easier for investors to access the stock. Also, BABA faces more competition. The stock is not cheap. Further, Chinese growth continues to decelerate. And who knows about these U.S. tariffs?

(A Top Pick May 07/18, Down 16%) Global banks have been hit hard by an inverted yield curve and lower interest rates, but MS is cheap at 9x earnings. He expects double-digit growth ahead. They're raising their dividend and buying back shares. MS is the largest wealth manager in America. Boasts a PE below 10x.

(A Top Pick May 07/18, Down 1%) They benefit from higher oil prices right now. Pays a solid yield of 5.5%. Cash flows are growing. Surprisingly, RDS is one of the largest investors in renewable energy which will well-position them in the decades to come.

(A Top Pick May 07/18, Down 8%) A Japanese electronics company. It took a downdraft in late 2018, but its valuation is insane with no debt. You're buying the company for less than working capital. It's worth more than double the current share price. It trades at 7x earnings with a solid dividend.

They've suffered like all global banks, hurt by low interest rates. He likes this sector though, and this is a quality name with a safe, decent dividend.

Gold He's never owned gold, which he considers a lousy investment over the long haul. A disaster. Gold usually does well when investors expect inflation, but there's no inflation now. Rather, gold is up because of geopolitical fears, but those always blow over. Gold--why bother?

Bombardier bonds Don't buy one high-yield bond. Bombardier has long had negative cash flow that they haven't changed in years.

They make glass for cars and fiber-optics are back in a huge way (i.e. virtual reality). Trading at a cheap 14x earnings and have back a ton of stock in recent years. They benefit from the growth of technology and face few competitors.