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Markets. The action in the last month or so is an inherently healthy process. Bull markets really do climb a wall of fear, and while the US market has been strong for a couple of years, it really hasn’t had any fear to counterbalance it. The playbook that central banks have is to flood the system with liquidity, and that just means the market continues on for another couple of years very, very strong. He has been very, very light on energy, and almost entirely absent on resources.

Currencies. The majority of the damage has been done to the loonie. It is going to be a while before the Cdn$ recovers. Thinks we will see a $.70 dollar, before we see a $.80 dollar. We are the only normal petrocurrency globally, the only country producing oil and has a currency worth talking about. Unless you think oil is going back to $70, our dollar is not going back to parity.

Along with every other “value” manager, he has been wrong on this in is much as this stock has been going up and up and up, and defying gravity. This is not a value stock. The leverage that they employ is considerable. This is stretched in terms of valuation.

The best bank in Canada. They have the least exposure to energy right now. They are notorious for cutting costs and keeping costs low.

A really, really interesting company in terms of the commercialization of space. It has come off in this recent market. Virtually every satellite that goes up in the Western world has a Com Dev component in it. We are currently on the cusp of the commercialization of space. This company has the ability to benefit from a lot of the programs that are being proposed.

The telecom sector has been in a consolidation process for a while, and he thinks it will continue. Cable companies and telephone companies are going to be gobbled up. There is going to be competitive pressures. Dividend yield of 4.5%.

He has been lightening up in the sector. The information he is getting is that while sales are good at the car companies, the cars distributed out to the dealers are sitting on the lots

(A Top Pick Nov 12/14. Up 6.29%.) He really likes the food business. It is both stable and growing. This one specializes in non-meat proteins, one of the fastest-growing parts of the business.

(A Top Pick Nov 12/14. Up 15.79%.) No longer in cheques, but helps companies automate billing and accounting processes.

(A Top Pick Nov 12/14. Up 20.99%.) There has been tremendous growth in the airline business. A wonderful Canadian story. Thinks it is going to be a continuing growth story going forward.

Had owned this for some time, but switched to Tricon Capital (TCN-T). His concern was that the company might be somewhat vulnerable to a rise in interest rates in the US. Also, ownership is a little bit complicated. (See Top Picks.)

Feels the strong US$ could push gold lower. This company has been beaten down tremendously. As a conservative gold play, he prefers Franco Nevada (FNV-T). For a more pure play, in case of a turnaround in gold, he would prefer something like Detour Gold (DGC-T).

Canadian Banks have been under a fair amount of pressure in the last while because of a feeling they are going to be exposed to the energy sector. You could see loan losses as much as double if energy prices don’t perk up north of $50. Of the Canadian banks, Royal Bank (RY-T) has the least exposure. Scotia is the most international bank. With the International volatility, there have been some foreign-exchange issues. Doesn’t think you are going to go too far wrong with any of the Canadian banks. Dividend yield of 4.8%.

This has a larger exposure to the energy sector than what you would think, although they are a Québec based bank. 4.9% dividend yield. He would prefer others.

Canadian Tire (CTC.A-T) or Dollarama (DOL-T)? Both companies have some headwinds. If he had to pick, it would be this one. Longer-term they have shown tremendous adaptability. The headwind from a weak Cdn$ makes imported products for the stores more expensive. Thinks it will affect Dollarama more.