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Markets. There is a lot of focus on emerging markets. He looks at the foreign currency indexes. He is starting to see a bit of stability after a sell off. He is still looking for a modest correction over the next month or so. DXJ-N is an ETF in US$ to play Japan. PEK-N is a proxy for the mainland China market. VWO is a way to play emerging markets also. EWY is a great way to play South Korea, but normally when Japan does well, Korea does not.

Pays a higher dividend than securities in it by paying back some of the capital. So it is not a pure dividend. See their web site for details. Thinks the dividend is actually in 4-5% range and rest is return of capital.

He doesn’t follow it. In general he looks at upper $1400s to lower $1500s for gold prices in the coming year. We are in a trading range. Something needs to come along to change that.

Coal is not clean compared to Nat Gas but it is the cheapest source of the BTU. It will be here for a long time to come, but will get used less and less over the next decade.

The valuation is attractive here. A 3 to 5 year play on Nat Gas, which will be a growing part of the future and supplies are massive for the next 100 years. Accumulate the stock.

We are not early on insurance. If we get back to $35 then risk reward starts to get more compelling. Wait for a 10% pullback.

Educational Segment. Two weeks ago he launched a Sleep at Night Portfolio. The covered call ETF (ZWB) on the banks did very well but banks are overbought so we could trade it out at this point. Overall, he had a yield of 0.06% and beta of 0.48. So he replaces the banks with preferred stocks. He added PFF-N and GLD-N. By reducing financials and increasing preferreds he reduced beta. Results over last two weeks:

Markets. Non-Financial and Non-Resource N.A. equities are today’s topic. We had a very large run in the US since 2009. A lot has been a lack of alternatives. The Fed squeezed you out of bonds, so money flowed back to equities. After 2008's experience, people may move back to bonds for only 3%. He thinks the money flows into equities are gone and now companies are on their own. He always does bottom up. He is worried that the economy may not be as strong as people think based on fast earnings in big blue chips.

They’ve done a great job, but it may be hard to create profitability. It is a challenge that they may not exist in 10 years. You could enter if it got to liquidation value.

Good dividend at 5.3%. Cap-X level is high but there is good cash flow. A very defensive sector. It is going to grow over the long term.

Canadian Dollar. In the short term the Canadian Dollar will not do as well against the US with oil at $110, but he is bearish on oil long term. It won’t go back to par, however.

Fairly non-cyclical. You will always get good pockets of growth. But this one is stagnant. Nokia was not a good idea. He is concerned with the 10s of thousands of employees they just picked up. They are challenged and it is well known they are. Sees a low level of growth. 3% dividend. Be prepared to hold it for 3 years after the new CEO turns things around.

7%+ dividend means it is not dead money. A very high quality REIT. The entire sector has come under pressure. People worry about how they can roll over mortgages over time. Smart management team. Being paid to wait. He would wait because over the long term it will probably be up.

4% dividend is good, but not great. A few acquisitions were put together. But he does not like the cigarette business. Too many laws working against you and getting worse. There is a trend toward people getting healthier. It has a beta of 1 so it may not be that defensive. Not a lot of growth potential.

(Top Pick Jan 24/13, Down 8.99%) He got out somewhere in the mid $40s. Same store sales were not coming in where he wanted them to come in. There is some question as to how the CEO can pull strings to get one company to help another. Likes it over the long term but he stays on the sidelines for now.