Market. When you look at the facts it is difficult to make an argument on how the next few years will be as fruitful as the last few. The market is tired, exhausted, out of steam and is running out of catalysts as to why it should go higher and higher. He is realistic with his expectations now. When volatility does subside, we still can't have the same expectations for equities because the catalysts just aren't there. He invests 1/3rd Canada and 2/3rds US. He does not think we will be entering any kind of commodity boom.

This is a portfolio anchor type of company. It is defensive and pays a great dividend for a US equity. If you want to make a bet on Pharma you would not use this one because there are two other businesses in there. These other two businesses give it some diversification. It is a good long term play.

It is a portfolio anchor. They consistently raise the dividend. They have first mover advantage in terms of going into the US. They were quite successful. He invests 20% in financials. The dividends are safe. There has been a pull back in TD-T. Longer term you will do fine with this name. Don't be enthusiastic about over-weighting the name just because it pulled back. There will be volatility in the short term. There are other Canadian banks with higher yields.

It has been a rough ride over the last year, down over 40%. It has run up and then missed on earnings. It is a recession proof business. He is a buyer at these levels. It's an entry point.

(A Top Pick Jan 10/18, Down 14%) A lot has changed from the first half of the year to the last half of the year. He was trimming his position. He is not as enthusiastic about this name as he was earlier in the year.

(A Top Pick Jan 10/18, Up 1%) You need to be careful in the semiconductor space. He is still buy it and believes in it longer term.

Anything in the auto space has been quite challenged. He feels this is one of the more conservative ways to play the auto sector. It is cheap on a valuation basis. They are into driver autonomy and electrification and are a leader in these. You need to be patient with it because auto sales will not go through the roof any time soon.

Preferrds – are they prudent now. The kind you own is important. Fixed reset preferreds have a correlation to interest rates so they are helped by rising rates. You need to know what the reset terms are. Perpetuals he would be very careful of. Preferreds are like bonds that are taxed as dividends.