Thinks you could see oil prices trade between $80 and $100. The services industry is likely going to be softer in the forth quarter than people may be anticipating. A lot of oil companies have drilled themselves through their budgets for the year. Also, there is a sort of moratorium on takeovers now. Good dividend yield, well run and a little more exposure to the US than, say, Canyon. But he would prefer Canyon.
Corporate profit margins are pretty high (record highs) in the US since QE 2. It is going to be difficult to maintain them in a slowing revenue environment. Companies are saying it is a very, very difficult environment out there. We are in a secular bear market. You are seeing cost pressures with energy and food pricing being high. He has a higher percentage ($35%) of investable cash on the sidelines and will allocate it to the US market. He is waiting for a correction of at least 10%.