Market. The inversion of the yield curve tells you only ONE thing and that is that there WILL be a recession, but it does not tell you WHEN it will be. A recession is like death and taxes – it will happen, but when? Some of the best returns in the market are between inversion of the curve and when the economic ACTUALLY goes into recession. He will be watching carefully. He can't tell you if it is 12 or 36 months to recession. If businesses have access to credit then the economy can grow. Utilities had shrinkage of 5% in EPS last year but were one of the best performing sectors. People bought the ETFs because they thought they were defensive. Today the utilities are so expensive that it is pointless to be involved.

People get confused because they control the Candu reactor technology. It is a very small part of their revenue base. They also supply nuclear reactors to the US military for subs and so on. He sold because they took an order for pressure valves and they had quality issues needing rework. It now lacks a catalyst unless sub production increases. There are better investment opportunities elsewhere.

Resources: He is zero weighted right now.

The streaming thing is very interesting. They may or may not announce today they are getting into that business. If they follow Netflix into the space then it reduces the scarcity value. We will find out the hard way. He got out of AAPL-Q because he was worried their volumes would go negative. When this happens, others in the past have seen the beginning of the end when this happened. They have to show they can grow their revenues in other businesses. As you look out several years, there is the 5G network rollout.

(A Top Pick Feb 21/18, Down 12%) He took a position during low interest rates. They moved up and the industry performed incredibly well and then something bad happened. Interest rates went high and money market funds became competitive with bank deposits.

It is attractive. It is impossible to get a US mortgage without their score. It is moving to the cloud because some companies cannot afford an installation of their software. There should be more visible and repetitive growth due to moving to a software-as-a-service model.

Healthcare in general has outperformed in every bear market. A lot of it comes from large cap pharma companies. He prefers LLY-N. But there is no question that this one is interesting and has good management.

A Merger with another bank? He stayed way because he does not like their lines of business. Merging both balance sheets leaves him at a loss. He does not see how it helps them except perhaps to close branches and lay people off. Germany is a massively over-banked market.