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Markets. Greece. Will they make their IMF payment? It is going down to the short strings in terms of negotiations. He feels the whole world is prepared for a deal NOT to get done. It will be disruptive for a while, however. Other countries might consider leaving the Euro. The UK is lining up for 2017 for a referendum on leaving it. He believes the Economic union is not working. The Euro might start to get stronger as countries leave it. There are questions about where the US will land in terms of their growth. The number of experts that don’t know what to do is as high as it has ever been. He thinks we will have low interest rates for years and years.

Agriculture and Infrastructure ETFs – Are they truly global? Every sector is going to have its day. Then you have periods where they underperform. If you want to buy the world then buy VT-N and Agriculture and infrastructure are included. You can go into a sector specific ETF (e.g. MOO-N and COW-T (77% US exposure)) if you think a sector is going to do better. These particular sectors will get decimated when bond stocks compete with dividends.

The recent move down bounced off a 200 day moving average. But we have to consider the trend of lower lows and lower highs in this one. For now, the interest sensitive stocks like this one have had pullbacks. XRE-T, the capped REIT ETF is overweight, but the BMO version is equal weight and has done better. He is underweight REITs right now. He would wait for the latter half of the year to buy REITs.

Biotechs mostly don’t pay dividends. When you get into a growth and momentum trade and the stock has doubled in a year or two, then it is not sustainable. He feels there is no value here. Look to take money off the table at some point, not put money in.

Gold. CGL-T is a way to hold gold bullion, but hedge the Canadian dollar. The mining sector is dirt cheap. Below $1175 be wants to own it and will sell by $1225. If inflation starts to kick in, then gold will shine again but you don’t play for that today.

Educational Segment. The US$. The trend line on a chart of US vs. Canadian $ from 1967 suggests it is not over. The catalysts for this will likely last a long time. The US dollar was almost this low compared to the Canadian $ in 2008, but what is the catalyst to make the situation worse? He doesn’t see one.

Markets. He is focused on the attributes a stock has. He looks at momentum and valuation. If you looked at the 6 month returns of all stocks and ranked them, then every month made sure you held the top 25 of them you would outperform the market. On top of this he looks at valuation. If you ranked the best valuation stocks and bought those you would outperform the index. Try to bias yourself to the best combination of attributes. The deflation trade is unwinding and perhaps we are just moving into an inflation trade. March/April was when this started to shift. Investors should start to shift more into the cyclical part of the market.

Have done a phenomenal job of filling a gap that the banks left in 2008. The stock is up off a refinancing deal they did. It scores in the top 10% for him. He holds it strictly on a momentum basis. There is talk they have a big acquisition lined up and that should push the stock higher.

You are going to get a lot of volatility. The PE of 12 is reasonable. It has fallen off recently and would push him to the sidelines. Not a particularly compelling valuation.

He does not hold it because of a lack of price momentum. It has always been a favourite of US short sellers. The valuation is not bad and they have a good history of return on equity. They recently missed on one of their quarters and is probably why it fell off.

He bought on strong price momentum. They are now splitting into two companies and recently had a tax ruling that allows them to do that as of June 1. He needs to see some track record of the two new companies in order to judge valuation. He would stick with this one.

It is a clinic roll-up strategy. They use valuation of their equity to purchase these at a lower price and then get a lift. He would argue that it is getting into a bit of a bubble territory. Valuation is not there for him. Price momentum is off the charts and can carry it forward. You want to be very cognizant of when to get out.

It is a short for him. It is based on the valuation. It has a lot of debt and low cash flow. They are in the danger zone. However, momentum has started to move up. There will come a time when the momentum overrules his criticism on valuation.

It is one of his top holdings. It has represented the best combination of all attributes until very recently. It is trading a little rich these days, but they have beaten earnings consistently until very recently. His concern is that these staple and consumer stocks have had a good run because of funds flowing into the sector and rotating away from energy. So valuations are starting to get a little stretched. Price momentum has started to shift and we are seeing a little bit of weakening. It is a very well run company and can grow through acquisition and do so outside of Canada.

It scores at the top on a price momentum basis. But there is not a lot of value there. There is no cash flow and they have no earnings. Volatility is extremely high. You could own it as a trade.