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Markets. The Investment industry has a tendency to analyze everything Ad nauseum. When an event does happen, it is basically a non-event because we have so many opinions of what is going to happen. Where we get hurt is the event that we don’t know what is coming. If the market weakens because of the Fed tapering, use this as a buying opportunity. He is very bullish on global economies.

TOP PICK

All 3 Top Picks are built on the theme of worldwide growth. Large engineering/construction companies. In this one they had to have 70% of revenues from large megaprojects.

TOP PICK

All 3 Top Picks are built on the theme of worldwide growth. This is going to be 15% consumer discretionary, 17%, industrial, 9% materials.

TOP PICK

All 3 Top Picks are built on the theme of worldwide growth. Loves the equal weight ETFs. If you compare equal weight to market, the equal weight will always outperform.

HOLD

These are preferreds that are maturing each year for the next 5 years. As one matures today, another one is bought 5 years out. A lot of these are rate-resets and some of them have not been reset, which means that have been redeemed, which is probably a good thing. On the Federal Reserve talk in August about tapering created a spike up in the 10 year treasury. That caused a lot of interest-bearing securities to come off. Still likes this very much. 4.66% yield.

BUY ON WEAKNESS

Just had a 2-for-1 split. 3rd quarter had great numbers and the operating ratio is now down below 60%. Feels that rails are priced for perfection. If the whole market comes off with the taper, he would definitely be a buyer of this one. Try to get at $52-$53.

HOLD

The leading US service company. Can’t see it falling below the 200 day moving average and can easily see it getting back up into the $54 range. One thing he finds troubling is that they have property in West Africa. In 2015, the US will be the world’s largest oil producer. 1.2% dividend yield.

HOLD

Likes this sector as well as this company. 3rd quarter earnings were disappointing. Lumber prices have decreased in costs. 3.4% yield.

COMMENT

He owns iShares DJ Home Construction (ITB-N) which is very similar but consists of 65% of actual homebuilders while this one has only 29%. The rest is mattress companies, building stores, etc. Likes the sector. If you like the homebuilders then Buy the homebuilders.

COMMENT

This is oil sands and there is a huge backlash globally on this. There are other Canadian companies that pay bigger yields and are dealing with light oil, which he would prefer.

PAST TOP PICK

(A Top Pick Jan 9/13. 28.52%.) These are mostly regional banks. This was a no-brainer. We had the issue of home building in the US and it was an area that was poised to make a big move. Still likes.

PAST TOP PICK

(A Top Pick Jan 9/13. Down 2.87%.) Changed the name, which now indicates it is emerging-market momentum, which he does not like. The name change has affected how investors see this ETF and he would never Buy this now.

PAST TOP PICK

(A Top Pick Jan 9/13. Up 13.23%.) There was so much bad news on this company at that time, but the stock rarely fell below $39 in the last year. They are now securing financing to take over some oil/gas play.

PARTIAL BUY

Would like to buy this bank but it keeps going up every day and feels he is chasing it. Buy now before it goes higher or can you see a pullback? This is always a dilemma. You have to establish a price that you want to pay for it and you buy it at that price. He would take a half position. There will probably be a Santa Claus rally that we get every year. The 1st quarter is always a good time to be in the marketplace.

DON'T BUY

Back in the 1940s every dollar invested in gold exploration returned $105. In 2000, that $1 returned $1 and today it is below $1. There is only one company that he has ever seen that has outperformed bullion. Buy iShares Gold Bullion (CGL-T) instead.