TOP PICK
US Financial Services ETF. Expecting a lot out of the US financials. As loan-loss provisions start to wither away, earnings power becomes much greater. He is looking for explosive earnings. Will probably have to wait to see the 2nd quarter #’s in July before it breaks out of its range of $15.50-$17.
TOP PICK
S&P 500 $Cdn ETF. Thinks US large-cap market is where you want to be. Expects a great deal of earnings momentum. Prefers using a hedge.
TOP PICK
Broad Emerging Market ETF. Sees growth in emerging markets.
BUY
US High Yield Bond Index Fund. Paying out a little bit more than the underlying yield, meaning the payouts could go down a little in the future.
BUY
High Yield Bond ETF. Uses a forward so that payments you get, instead of being taxed as interest, are taxed as capital gains. Gets you around the US withholding tax. Good for a taxable account. (Pays out a little bit more than the underlying yield, meaning the payouts could go down a little in the future.)
COMMENT
How far out would you go when writing Calls? Depends on what you are trying to defend. When gold started to cross $1200 he was writing 1-month calls against the Gold ETF (GLD-N) on the expectation gold would come off. Generally, 3 months is what he would be looking for.
BUY
Gold S&P/TSX ETF. Likes gold stocks, which seem to be undervalued relative to bullion. Expecting a round of takeovers from the big metal companies. He doesn't have any individual gold companies, just uses this.
BUY
S&P/TSX REIT ETF. Likes real estate. Has 5% in Cdn real estate and has been looking at the US sector.
SELL
Based on EFA Index (Europe, Australasian, far east). Sold his holdings about 2 weeks ago. A big part of this is European banks. Doesn't think the banks are in trouble but expect they will have to issue a lot of equity. If you own, you could Sell and buy options against it but this could be flattish for a little while.
DON'T BUY
S&P 500 Inverse ETF. Feels Inverse products are dangerous because they get reset daily. (Would prefer using Shorts instead.) Because he is bullish, he would not be buying Inverse products.
SELL
Cdn Govt Bond ETF. He would be cautious on government bond portfolios. You get a much higher yield on corporate's than you do on government’s. If you own, he would switch.
HOLD
Strong board and management team. Advancing assets toward development. Will participate along with gold price move.
HOLD
Stimulus program for cash for clunkers really took hold. It’s fully valued. Issues with skyjack assets. Questions growth opportunities going forward in the short term.
BUY
There needs to be more consolidation in the space. This one has had quite a bit of recovery. This has the potential to be taken out at some point. Added to position in the last week.
BUY
3% of his fund. West African gold story. Continues to like the name. Trimmed holding recently to re-balance. Continues to like it.