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Markets. Canada has to go a lot lower. The US is fighting between 2 bookends. If the Fed does what it should do and not raise rates, then everything is fine and look for about a 12% bounce in the S&P 500. If all does not go well, 3^rd quarter earnings as well as the Fed, look for about $1750 on the S&P 500, about 10% down. If it goes down there, there would be a huge tradable rally at that level. Raising rates is more of a political decision rather than an economic one. China is looking at corporate tax cuts, and these are drips of desperate actions. They have a “balance of payments” issue. In the month of August, they spent over $100 billion in keeping the Renminbi at a level at around the US dollar. They are spending $4 trillion of Foreign Exchange reserves, and that is going to continue until there is meaningful devaluation in the Renminbi. When China does devalue, it will be quite large. Unfortunately that is going to set up a deflationary wave globally. We have to get ready for very volatile down markets, but in the interim, we seem to have these huge relief rallies. He favours US assets. Every day the US$ looks bigger and bigger. Any US assets are good, but if push comes to shove, the S&P will come down to about $1750, but he thinks it becomes stable there.

This is at a very excessive valuation. When you look at any of the telcos, especially in Canada, they have had huge runs over the last 6 years. This is trading over his model price. Canada is a very hard place to find anything of value.

The US market is a bifurcated market, and if you have growth, which this one does, the market loves you. It’s where growth is and they are going to beat their earnings estimates every quarter.

Comparing it to junior producers, it has held in well. It has been expensive and he has never been high on buying this. He would be cautious in this group, as he thinks there is more downside to go. Dividend yield of 5.4%.

He likes this.

Thinks it is going to be a rough quarter for all of these companies, including this one. A little too volatile for him. He would prefer Intel (INTC-Q).

These types of companies are all at his EVB10. Even in the tech bubble back in 2000, there were only 1 or 2 companies that were EVB10. This is expensive. Expect volatility. This next quarter, if they have good earnings, it will maintain its EVB10, but you are playing with fire with quite a few of these companies. They cannot sustain their valuations at these high levels.

(A Top Pick Aug 15/14. Up 16.56%.) His model price is $156.53, a 40% upside. There is a lot of value. This is all about the iPhone, which is 70% of their earnings. Thinks it gets volatile here because the earnings look a little shaky. Doesn’t think the iWatch is even close to being a hit. AppleMusic is a dud. The company is going to have to drive hard to maintain its valuation. If there is any disappointment whatsoever, this goes back to $85 in a hurry. He would be interested at $85 for a trade.

(A Top Pick Aug 15/14. Down 36.81%.) Still likes this, along with Exxon (XOM-N) and he would recommend both here. This is trading right on his model price. This has never traded at this cheap a valuation since 1995.

(A Top Pick Aug 15/14. Up 17.01%.) A great company to hold in this particular market. If you are looking for shelter in the storm, this is a wonderful company to hold.

Just did a $3.5 billion deal. He has a model price of $121.09, a 22% upside. Expects growth to continue.

This bottomed out in valuation in 2008. He has a model price of $85.53, a 28% upside and there is support. There is an incredible amount of value here, but the market doesn’t care, because it is not growing.

Which Canadian bank or insurance company to hold for 5 years? They all have to go lower. Thinks the Bank of Canada reduces rates significantly in the future. Interest margins are getting squeezed. A lot of people have all kinds of concerns, certainly on real estate and its value. He is underweight both of these areas.

His model price is $14.93 a 42% downside. Thinks the stock moves lower. It has to go to $20.87.

This was a $90 company back in 2008, way above its model price. It has had 6 years of down markets. It is now at its BV. These utilities have come down a long, long way. His model price is $31.