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Markets. When you look at retail sales and growth rates over the last 15 years, they have gone down, but China is still growing at a tremendous rate. No one on the planet believes that it is 7%. Most think it is 6.0-6.6%. It is the second biggest economy in the world. This is actually China’s second big spike and fall, the last being around ’08. The world oil demand is still going out and with Iran coming back on stream next year, there are some issues to be debated. The US has seen the boom in fracking and it is over. The world economy is not that robust and strong. If the US had not accumulated 9 Billion in debt since Leman, the US economy would still be shrinking at a couple percent a year.

Gold and Silver. He was long 4 or 5 weeks ago. But deflationary pressures are more than inflationary. Gold is taking a back seat. If it breaks lower to new lows then buy, and sell if it breaks $1250. New lows could result from tax loss selling of gold stocks.

Short Oil ETFs? There is no ETF that shorts oil producers in Canada. He does not recommend shorting oil producer long ETFs.

Very regional player. Banks came down recently. When oil turns around, this will tend to lead banks. A steeper yield curve would be better for all banks, if interest rates start to rise.

It is more into fixed income which is shorter term. There is nothing in those holdings yielding what the ETF yields, so you are getting some of your own money back. He would suggest looking at his own global dividend fund (BMO Fund). Ishares has one like it also. These are ideal because their balance between fixed and equity shifts with conditions.

Hedged or unhedged for Europe exposed ETFs? The biggest differentiating factor in equities around the world is currency fluctuation. At the moment you want to be hedged, but when we get to parity you want to be unhedged to get the benefit of the currency gains.

US Phama that trades in US dollars. They have had a big run and more volatility could bring more downside to the high fliers within the sector.

Corporate spreads – have they impacted ETFs? Credit spreads have widened. There is some value in the credit area right now. But if interest rates rise you will lose some capital.

Educational Segment. It is FED Week. What happens with interest rates for the next couple of years is really important for investors. The probability of them moving up a full 25 basis points next week is about 20%. He is expecting half that. There is about a 60% chance that the Fed does a half a move. In the 50’s when interest rates went up at first when hikes started, the markets also went up because it was due to the economy being stronger. He does not think we will get over tightened any time soon. He thinks that even if the FED tightens 4 times, the markets will still be strong. There is no historical period to use as reference as to what to expect. He thinks lower rates are here to stay for quite a while.

Markets. The reaction to what has happened in China is excessive. We have seen a huge draw down in earnings expectations in the US as the year has gone on. Earnings are now looking like they will be down this year. This decade, US stocks have been the best place to be. About 45% of his clients’ investments are in the US. The key to selecting US equities is to look at large cap, battleship type blue chips with most of their revenues in the US.

In China you buy a car with cash, so sentiment swings are larger. North America and Europe will not be able to offset a reduction in car sales in China. He thinks car sales will stay strong for another 2 years. He owns LNR-T.

It is the only one of the three delivering good financial and operational results. But life insurance companies are not necessarily the best financials to be in. He has no lifecos because they have a difficult time in a low rate environment. He has banks.

It looks like it is consolidating. You could buy it now.

He would wait because the volatility is so high. People are doubtful they are getting orders for the ‘C’ series. The recent rally was speculation. If it goes back down it would be a speculative buy.

They just came out with great earnings. It is attractive, but reminds him of EFN-T which didn’t do anything for a year. He might have made AL-N a top pick today. He likes to hold stocks 3-5 years.